Slide Over That $50 Million, I’ve Got Photo Widgets!
As you give a goofy look at the camera pointing at you in a photo kiosk at an entertainment venue, you begin to wonder what captions and background you’ll use.Â Now take this concept, slap it on the Internet in the form of a widget that can be Facebooked or MySpaced, and you’re ready to raise $50 million.
Business-savvy Internet entrepreneur and PayPal co-founder, Max Levchin did exactly that, as mentioned in BusinessWeek.Â Slide raised $50 million and increased their valuation to $500 million.Â This fourth round of investment was provided by Fidelity Investments and T. Rowe Price.
Photo widget companies is a proven model for acquisition targets, but is also a proven model for its vulnerability ofÂ mooching on other social networks’ user base.Â For example, Photobucket wasÂ acquired by News Corp. in May 2007 at a price of $250 million in cash.Â But before the acquisition, MySpace completely blocked Photobucket from accessing their users because of an advertising violation before making a truce.Â
Altogether, Slide has raised over $75 million including investments from other PayPal co-founder, Peter Thiel and venture capitalist, Vinod Khosla.Â Thiel is an early investor of Facebook.Â The other founders of Slide include Jared Kopf and Scott Banister, both also former PayPal employees.
Previous Slide coverage is available at: http://pulse2.com/category/slide/.This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry