Comments on: Ning, What We Can Learn (or, Commercialization Done Right) http://disruptivethoughts.com/2007/07/11/ning-what-we-can-learn-or-commercialization-done-right/ Thu, 28 Aug 2008 11:11:34 +0000 http://wordpress.org/?v=2.2 By: nate http://disruptivethoughts.com/2007/07/11/ning-what-we-can-learn-or-commercialization-done-right/#comment-75243 nate Sat, 01 Sep 2007 01:39:39 +0000 http://disruptivethoughts.com/2007/07/11/ning-what-we-can-learn-or-commercialization-done-right/#comment-75243 You give Ning a lot of credit for raising $44M, but the fact that it was Series C money means the dilution on whatever shares anyone in that company still holds (other than the founders) has probably killed their potential to make a bundle. Think about this: Investors want 10x return on their money. Typically they will take 30% of the company for their cash (unless you get an amazing deal). Let's just say Ning investors give $44M for 30% of the company. Not even counting the other two rounds of financing (which must have been in the small millions just simply based on the number of people they have working there), Ning would have to be worth somewhere around $500M valuation for the investors to sell. Now, if you think they can make it that high or go IPO, then by all means, give them as much credit as you want. I really hope they do make it that high because they're super nice folks. But, I have a hard time thinking that Ning will be worth that kind of money unless they pull off some crazy antics to monetize. The Playboy app is interesting, and a good start. I guess we'll see if there's a market for that in the next few months. I'm not altogether convinced of it though. You give Ning a lot of credit for raising $44M, but the fact that it was Series C money means the dilution on whatever shares anyone in that company still holds (other than the founders) has probably killed their potential to make a bundle.

Think about this: Investors want 10x return on their money. Typically they will take 30% of the company for their cash (unless you get an amazing deal).

Let’s just say Ning investors give $44M for 30% of the company. Not even counting the other two rounds of financing (which must have been in the small millions just simply based on the number of people they have working there), Ning would have to be worth somewhere around $500M valuation for the investors to sell.

Now, if you think they can make it that high or go IPO, then by all means, give them as much credit as you want. I really hope they do make it that high because they’re super nice folks.

But, I have a hard time thinking that Ning will be worth that kind of money unless they pull off some crazy antics to monetize. The Playboy app is interesting, and a good start. I guess we’ll see if there’s a market for that in the next few months. I’m not altogether convinced of it though.

]]> By: nate http://disruptivethoughts.com/2007/07/11/ning-what-we-can-learn-or-commercialization-done-right/#comment-100912 nate Sat, 01 Sep 2007 00:39:39 +0000 http://disruptivethoughts.com/2007/07/11/ning-what-we-can-learn-or-commercialization-done-right/#comment-100912 You give Ning a lot of credit for raising $44M, but the fact that it was Series C money means the dilution on whatever shares anyone in that company still holds (other than the founders) has probably killed their potential to make a bundle. Think about this: Investors want 10x return on their money. Typically they will take 30% of the company for their cash (unless you get an amazing deal). Let's just say Ning investors give $44M for 30% of the company. Not even counting the other two rounds of financing (which must have been in the small millions just simply based on the number of people they have working there), Ning would have to be worth somewhere around $500M valuation for the investors to sell. Now, if you think they can make it that high or go IPO, then by all means, give them as much credit as you want. I really hope they do make it that high because they're super nice folks. But, I have a hard time thinking that Ning will be worth that kind of money unless they pull off some crazy antics to monetize. The Playboy app is interesting, and a good start. I guess we'll see if there's a market for that in the next few months. I'm not altogether convinced of it though. You give Ning a lot of credit for raising $44M, but the fact that it was Series C money means the dilution on whatever shares anyone in that company still holds (other than the founders) has probably killed their potential to make a bundle. Think about this: Investors want 10x return on their money. Typically they will take 30% of the company for their cash (unless you get an amazing deal). Let’s just say Ning investors give $44M for 30% of the company. Not even counting the other two rounds of financing (which must have been in the small millions just simply based on the number of people they have working there), Ning would have to be worth somewhere around $500M valuation for the investors to sell. Now, if you think they can make it that high or go IPO, then by all means, give them as much credit as you want. I really hope they do make it that high because they’re super nice folks. But, I have a hard time thinking that Ning will be worth that kind of money unless they pull off some crazy antics to monetize. The Playboy app is interesting, and a good start. I guess we’ll see if there’s a market for that in the next few months. I’m not altogether convinced of it though.

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