Did YouTube Just Raise another $25 million?

Next Story

SalesGenius Launches: Track Sales Leads

I’ve heard from three independent sources that YouTube may have very quietly raised another $25 million in venture capital after raising two rounds totalling $11.5 million from Sequoia Capital. YouTube’s last round ($8 million) was announced just a month ago, on April 5, 2006.

There are two reasons why I think this rumor may be accurate. First of all, YouTube is on a roll: 35 million videos are watched daily and they have 13 million unique monthly visitors. Bandwidth costs for all of these videos adds up: Forbes reports that YouTube’s bandwidth fees are approaching $1 million per month. Since YouTube is revenue-free (they just started placing ads on the site in March), they need more than $11.5 million in capital to keep up with growth.

Second, it is also understandable that they would raise a lot of cash over two rounds given that Sequoia Capital is involved and almost certainly has veto rights over new rounds of financing. Sequoia will want to maintain their equity share of the company (probably in the 25-30% range), but won’t want to pay current prices for those shares by participating in a new market valued venture round. The solution? Do a round at a lower valuation where only Sequoia participates, and then follow up with a subsequent round (possibly only days later) with new venture capitalists at a significantly higher valuation. This is the VC game, and funds like Sequoia can pull this off with their hotter startups.

Like I said, this is only a rumor (and I’ve been dead wrong with YouTube rumors in the past), but this one makes a lot of sense.

  • http://www.echosign.com Jason M. Lemkin

    I’ve used it and it’s slick. It’s good to have Appirio pushing the envelope on cloud mash-ups … the direct ROI isn’t there yet so glad they’ve gotten PR ROI out of this to show us some neat things that can be done.

    • http://www.appirio.com/products/rms/ Narinder Singh

      The initial myfriends@work was certainly more “neat.” Where we have been able to go with this app is to allows folks to encourage, manage and measure “word of mouth” (referrals) has a very tangible business case behind it. We all know jobs, products, services are heavily influenced by the opinion of people you trust, now there is a way for businesses to align with that without being ‘spammy’. These kind of mashups can only turn the corner for enterprises when there is a hard and soft ROI ready to be had.

  • http://www.radsense.com peter

    Azurejournal http://www.azurejournal.com/2008/11/cloud-mashups-web-30-or-cloud-20/ has a good article about cloud mashups .. this IS the future!

  • EH

    You mean if my friend has this running, I can express interest in things in order to receive a marketing campaign for those things? Truly groundbreaking.

    • http://freefreebiefinder.com Chandler

      gahhhhh

      freefreebiefinder.com

  • Mark

    You had me until you said $10K to $25K per year.

  • asim

    Dear Professionals,
    I am a undergrad student and I have developed a breakthrough solution.I developed many proposals and send to many companies ,no esponse.
    Please guide me how to make some company to read your propsoal(unsolicited)?
    What is right method?

    • http://www.grubcanada.com Ross Lipson

      Would love to hear your solution.

      • asim

        Dear Ross ,
        the thing is how I make companies read my proposal?

  • http://cloudwiki.wordpress.com/2009/01/30/combining-clouds-appirios-refermyfriends-app-deftly-links-facebook-to-salesforce/ Combining Clouds: Appirios ReferMyFriends App Deftly Links Facebook To Salesforce « FZI Cloud Computing News Stream

    […] Combining Clouds: Appirios ReferMyFriends App Deftly Links Facebook To Salesforce Posted on January 30, 2009 by Markus Klems http://www.techcrunchit.com/2009/01/30/combining-clouds-appirios-refermyfriends-app-deftly-links-fac… […]

  • John Agan

    Can someone refer the second person on that list to me?

  • http://crmfreeware.com/combining-clouds-appirio%e2%80%99s-refermyfriends-app-deftly-links-bb/ Combining Clouds: Appirio’s ReferMyFriends App Deftly Links b…/b | crmfreeware.com

    […] Combining Clouds: Appirio’s ReferMyFriends App Deftly Links b…/b […]

  • http://www.stevesacks.com.au Steve

    Fantastic app.
    On the down side, let’s hope it doesn’t end up like telemarketing with millions of invites to attend webinars popping up on your notifications page.

  • http://www.z3lanh.com/vb منتديات

    Please guide me how to make some company to read your propsoal(unsolicited)?
    What is right method?

  • http://www.z3lanh.net مركز تحميل

    Can someone refer the second person on that list to me?

  • http://www.babyface.url.tw/about.html 婚紗攝影

    it’s very good , i love it. by the way,
    please let me post a link…….you know that,thank you very much

blog comments powered by Disqus