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Six Apart grabs $12 million more; cocktail circuit says bubble is growing

Updated: We were just saying you shouldn't believe anything about this VC world unless you scrutinize it (see post above). We've heard from very good source that this Six Apart funding is not done, and will take a couple of more weeks to wrap up.

Six Apart, the creator of blogging products like Moveable Type and Typepad, has raised $12 million in a third round of venture capital, according to IDD Magazine. Intel is rumored to be in on the deal. (Update: Om is sleuthing the deal.)

There's also a discussion about how Wall Street doesn't look ready to take any of these so-called Web 2.0 companies to the public market anytime soon.

This follows lots of gossip Friday night at the Techcrunch party about whether there is a bubble now in the Web 2.0 world. Robert Scoble, the Microsoft blogger, took of his shirt in the cold for a "naked" conversation, and writes afterward that there is indeed a bubble. At former Tribe CEO Mark Pincus' party, last Thursday night, the bubble was also dominating discussion. Someone said, about all the financings, but no IPOs: "There's a lot of foreplay going on, but no one goes home to have sex."

The answer is yes, there is a bubble, because...

VCs are throwing a whole bunch of moolah at services with incremental improvements at best in things like blogging software, blogging search, blogging news-ranking, online multimedia content, etc. It is a limited bubble, because the amounts are $15 million and less, compared to the $100 million to $400 million-plus being thrown at Web sites (online grocer WebVan, for example) in the late 1990s.

Meanwhile, there's another little bubble expanding in the private equity industry. Private equity firms are those which invest large amounts of money into more mature companies. Paul Kedrosky points to a BusinessWeek piece about how some firms are paying as much as $300,000 to fresh MBAs.

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From: meeboo
Tracked: February 19, 2006 5:52 PM
From: Services Web 2.0
Six Apart l̬ve 12 M$
Excerpt: Aucun rapport entre les 2 nouvelles! Mais le hasard fait parfois les choses de fa̤on amusante: au moment o je reviens sur Typepad, Six Apart, ̩diteur du site, a conclu un nouveau tour de table. Selon IDD Magazine, le montant
Tracked: February 20, 2006 12:36 AM
From: InteractiveBiz
Une bulle dans le web2.0
Excerpt: ̤a y est... apparemment ̤a gonfle... beaucoup de soci̩t̩s estampill̩e web2.0 l̬vent des capitaux mais il y a peu ou pas d'introductions en bourse. Six Appart ̩diteur de blogs vient de lever 12 millions de dollars. Ils en ont parl̩ vendredi der...
Tracked: February 20, 2006 1:51 AM
From: SortiPreneur
Bubble? No, Demand Elasticity
Excerpt: Mark Pincus, in his comment to a Matt Marshall post, touches on the bubble debate and comments:I would characterize the present environment as one of saturation which is not necessarily unhealthy. vc's are paid to place bets. entrepreneurs are paid
Tracked: February 21, 2006 6:00 AM
From: SiliconBeat
Vizu raises $1 million for unrobust online polls
Excerpt: Vizu, a San Francisco-based start-up that does interactive Web-based polling, has raised $1 million in a first round of funding. The site lets you share the results of the polls with your friends. It is backed by WR Hambrecht + Co, and it joined by Am...
Tracked: February 21, 2006 9:42 PM
From: TJ's Weblog
SixApart with new round
Excerpt: It seems many blogging properties and technology providers should wait for a call from SixApart's VP Business Development - they must do something with that money... From Silicon Beat: "Six Apart, the creator of blogging products like Moveable Type...
Tracked: February 23, 2006 9:15 PM
From: Bourse
Excerpt: The proposed Iranian Oil Bourse will accelerate the fall of the American Empire.A privately organised forum in Jeddah became t...
Tracked: July 31, 2006 2:33 AM


In the late 90s everyone was throwing money at web startups, expecting the same insane return that someone else got. That's how we got a bubble. With web 2.0 the investments are much more limited. Yes a lot of people are excited about the good work coming out of this space, but you can't call that a bubble, because it won't burst.

Ying on February 19, 2006 2:45 PM
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what will burst is the venture capitalists' desire to fund the Web 2.0 flotsam

Matt Marshall on February 19, 2006 6:33 PM
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"Someone said, about all the financings, but no IPOs"... seems to me that the ideal exit for a lot of these start-ups is not an IPO, but to get acquired. I question if IPO is the goal of many start-ups anymore.

Penguin on February 19, 2006 10:42 PM
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...And there, the bubble is the stock prices of Google and Yahoo. Now that those stock prices have come down, we will see how long those two continue to have the stomach to gobble up these Web 2.0 companies...

Matt Marshall on February 19, 2006 10:47 PM
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i get the feeling you're attending too many web 2.0 cocktail parties:)

we need to differentiate between bubbles and saturated environments. THE bubble was characeterized by a public mania that fueled an irrationale pubic stock market and trickled back down through the system.

i would characterize the present environment as one of saturation which is not necessarily unhealthy. vc's are paid to place bets. entrepreneurs are paid to create betable plays. seems to me that everyone is doing their jobs right now. there have been plenty of periods with saturated bets and little results to show for it. remember the cd-rom 'bubble' of the early 90's or the famous case of too many disk drive wannabes in the late 80's?

what's changed is that the bar to create a bet is way lower and the bar to a bettor is now open to just about anyone so we're seeing a lot more entrants. i think that democratizes what's been a somewhat clubby industry for too long.

mark pincus on February 20, 2006 7:11 AM
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Mark is smart and just said what I think. Where is the funding of flotsam... someone write the list. It will add up to less than the money raised by saddlebags.com in March 2000 (although maybe that IPO did get pulled).

Dorrian on February 21, 2006 7:15 AM
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I won't say this funding as useless. Even when we have a whole bunch of solutions with us. I don't find anything that doesn't have frustrating features for users. Sometime back i was looking for a multi-author blog, where all kind of media files can handled in a neat way. A hosted solution and free for http://algorithminterviewquestions.blogspot.com. I hate blogspot for its poor templates and lack of community concept. I tried more that 10s of platforms and finally had to come back to multi-author feature, as i could find some barrier with every other platform. I don't have good enough template and can't out inline presentations, poscasts, videos and photoalbum there. I can't have justified formatting, No comment on comment (hierarichal like slashdot comments) or any community effect like digg and hell lot of other useful features. But i am stuck with it and waiting for someone to build my dream platform unless i get so desperate to write at my own. Now you can't say that there is still need to new blogging platforms.

Abhishek Goyal on February 21, 2006 11:38 AM
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What are the business models for these Web 2.0ers? Advertising?

Helen Wang on February 21, 2006 12:18 PM
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Abhishek, help is on the way...It's called Blogtronix...

Some features to begin with:
1. Support
2. Active directory integration
3. High security options
4. Appliance for added security
5. Community blogging
6. Content corporate compliance tools
7. Statistics
8. Wiki integration
9. User rights and management
10. RSS readers integration
11. Mobile access
12. Video and audio integration


(Disclosure: I'm involved with Blogtronix.)

Dimitar Vesselinov on February 22, 2006 7:34 AM
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Interesting post on EarlystageVC, this is an argument I would buy.


Ying on February 22, 2006 6:35 PM
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