Another $50 Million for RockYou…Why?

8 Comments

Wow…I had completely forgotten about RockYou, a Redwood City, Calif.-based startup that started out as a widget maker but then turned social app developer and now is trying out hawking virtual goods. Sort of like the company it loves to imitate: Slide. RockYou made a splash today by raising a whopping $50 million in new funding from existing investor Softbank. That brings the total funding raised by the 4-year-old company to $119 million. My view is that if the first $69 million didn’t make RockYou into a real, profitable business, what are the odds that the new $50 million will? Not very high!

8 Comments

jenkins

not sure why this company exists and not sure anyone would want to work there

powel

this is what happens when too many mba’s in management .. just look at that.

powel

ya and then look at everyone else .. it’s like stanford gsb class in there.

Gavin Schulz

I always thought you had to be smart to work in a VC firm. Evidently it just takes nerves of steel to cough up $50 million to a company that shouldn’t be getting any more money. From their published revenue numbers they should be able to break even. Now their only exit is an IPO which would have to be monstrous.

Dirk

Surprised the investors haven’t realized this simple correlation you laid out, both in regards to unoriginal business plan, and pouring more money in.

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