Ning Now Valuated At $500 Million. It’s True: “There’s Absolutely No Bubble In Technology.”
“We raised the money to enable us to keep scaling given our accelerating growth (over 230,000 networks on Ning now, growing at over 1,000 per day) and to make sure we have plenty of firepower to survive the oncoming nuclear winter. At current growth rates, we donâ€™t need it to get to cash flow positive, but having lived through the last crunch, itâ€™s good to be conservative with these things.”
-Marc Andreessen, founder of Ning [quote source: VentureBeat]
I have to admit that when I started writing for Pulse 2.0 about a year and a half ago, I used to think that another bubble would happen again. So many companies were getting funding again like we were back in the late 90’s. Since then Facebook became valuated at $15 billion, Feedburner got bought for $100 million, YouTube got bought for $1.7 billion, and the list goes on. Just when we thought VC spending was slowing down again, Ning raised $60 million and is now valuated at a half-billion dollars.
Ning is a company that builds custom social networks for a large client-base. The company was started by a co-founder of Netscape, Marc Andreessen. Allen & Company is investor that plugged in the $60 million. Ning’s third round was $44 million, provided by Legg Mason. Legg Mason also is a major shareholder in Yahoo!
Ning plans to use this funding to build it’s infrastructure for scaling purpose.
In an interview that Peter Thiel (early investor in Facebook) had with Kara Swisher of AllThingsD, he stated with confidence that there’s absolutely no bubble in technology.Â At first I was a skeptic of this quote, but now I’m a full believer.@amitchowdhry or on Google+ at +AmitChowdhry