How 10 Internet startups cashed in big

November 4, 2007 at 12:58 am 1 comment

 Kaboodle

Founders: Chetan Pungaliya, Manish Chandra, and Keiron McCammon
Acquisition Price: $30 million to $40 million, according to TechCrunch
Buyer: Hearst
Funding: $1.5 million from Garage Technology Ventures, Shea Ventures, Kanwal Rekhi, Jeff Clavier, Ron Conway, Georges Harik, Rajeev Motwani, Iggy Fanlo; $3.5 million from Shea Ventures

The Runup:
During its two-year incubation, social shopping site Kaboodle faced many hurdles, including an electrical accident that took the left arm of founder McCammon. But by summer 2007 the site had formed a partnership with eBay (EBAY) and was luring more than 2 million unique monthly visitors. With the board help of veteran Silicon Valley investors including Ron Conway and Jeff Clavier, Kaboodle began forging ties with potential buyers. In its third digital media play of 2007, magazine giant Hearst in August paid an undisclosed amount of cash.

The Payoff:
“It’s an unbelievable sense of relief,” says Chandra, who says he agonized for months over whether to sell. Chandra and his partners received “a nice chunk” of their payout on closing day, he says. The rest will be paid over time, in addition to the earnout incentives stipulated by multiyear contracts. Hearst says Kaboodle will become an independent subsidiary, though it plans to integrate the site with content from other properties.

Advertisements

Entry filed under: Internet Startup.

The $10,000 Buisness Plan Advertise on Napkins

1 Comment Add your own

  • 1. Neill Kramer  |  November 5, 2007 at 9:09 pm

    In their newly acquired free time, perhaps the Kaboodle founders will want to help the next generation of social shopping take off — going beyond tagging and listing to IMing and sharing in real-time with bunnybot.com.

    Of course, after a well-deserved break.

    Reply

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Trackback this post  |  Subscribe to the comments via RSS Feed


About Biz News

My Name is Bisi and this is my blog This blog features stories that I have read that I think are interesting . I usually bookmark the stories that I find interesting but they are getting too many . I have decided to catalog and share them on this site . I am not really promoting the site so you might have accidentally stumbled on it . Thanks for visiting .
November 2007
M T W T F S S
« Oct   Dec »
 1234
567891011
12131415161718
19202122232425
2627282930  

Blog Stats

  • 164,191 hits

Feeds


%d bloggers like this: