[kwlug disc.] [slightly OT] "geosign" and weird business models

[Insurance Squared Inc.]

VC's probably threw money at these folks not based on what someone 
thinks the company is worth (even though I suspect folks here are likely 
dropping multiple 0's as to what they think that company makes) but 
instead they're throwing money at a company that knows how to make 
boatloads of money.  In fact, IIRC the money is for a new venture, not 
for their existing company.

I do think though that branding the company as domain squatters is a 
gross oversimplification.  They might do some of that, but I doubt 
that's what they actually 'do'.

Robert P. J. Day wrote:
> On Thu, 27 Sep 2007, Khalid Baheyeldin wrote:
>
>   
>> This could be another variant of "domaining" and "internet real estate".
>>
>> For some reason, venture capital firms love this leechy business.
>>
>> I wrote a brief overview on it here where you can see some links too.
>>
>> http://baheyeldin.com/click/866/0
>>     
>
> i was hoping khalid would contribute to the discussion since he (at
> the risk of over-simplification) runs a "web site" company and, when i
> first about $160 million in VC going to geosign, my first reaction
> was, "how on earth can *any* web site company be worth that kind of
> money??  that's just insane."  of course, that was when i assumed that
> geosign *designed* web sites.
>
> i got most of my info here:
>
>   http://annbrocklehurstjournalism.blogspot.com/
>
> and i spent some time yesterday following links.  at one point, i
> checked out geosign's portfolio here:
>
>   http://www.geosign.com/portfolio.aspx
>
> and noticed they apparently owned "hockey.com".  wow, i think to
> myself, that's a pretty desirable domain name, i wonder what they're
> doing with it and how they're leveraging that name as a moneymaker.
> go look:
>
>   http://www.hockey.com/
>
> i don't believe that needs any further commentary from me.
>
> rday
>   

-- 
Glenn Cooke
Insurance Squared Inc.
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