Can anyone make a business out of Plaxo?
Plaxo, the social network cum contact manager site, is reportedly on the market for $100million. The Californian company founded mid 2001 has raised around $30million of investment to date but has been eclipsed by Facebook and LinkedIn. Claiming 15million users, although just how many of these are active is questionable, it will no doubt reignite the debate on ‘new-media tech’ valuations. Yet again, the ‘profit’ appears to come from exit strategies relying on fools with a high concentration of greed genes operating in an overhyped market generating oversized valuations. Does the tech market solely revolve around expectations and exits or can anyone turn Web2.0 into a real business?
Revolution Partners are managing the sale. Current Plaxo Investors include Globespan Capital Partners, Sequoia Capital, Cisco Systems, Duff Ackerman & Goodrich.
