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YouTube Receives $3.5M Funding from Sequoia

Posted by ryuzaki0 on from the still-waiting-on-my-check dept.

An anonymous reader writes "YouTube, the self-described "Flickr of video" has now received $3.5M in funding from Sequoia Capital, the same VC firm that funded Yahoo!, Google, and PayPal. Competitors of YouTube include Revver, launched just last month and founded by Ian Clarke of The Freenet Project fame. As of now, both services are free. With the online video space heating up in recent months, the question is who will discover the best business model." YouTube was first mentioned on Slashdot shortly after its launch three months ago.

5 of 80 comments (clear)

  1. Google Video by dirtsurfer · · Score: 1, Interesting

    So, what's the difference between this and Google Video?
    Or should I RTFA? ;)

  2. So who are Sequoia? by Audent · · Score: 2, Interesting

    And who else have they funded...? Surely there are a couple of other companies, or are they simply very good at picking future winners on the largest scale possible?

    --
    I am a leaf on the wind
  3. business model? isn't it obvious? by idlake · · Score: 3, Interesting

    Their business model is obviously to be acquired by Yahoo!, Google, or Microsoft.

    1. Re:business model? isn't it obvious? by Anonymous Coward · · Score: 1, Interesting

      What about eBay? I'd rather have an embedded video in my auction than a Skype link...

      --
      ac

  4. Re:How dos VC works? by FireballX301 · · Score: 2, Interesting

    Hi. I'm a Venture Capitalist. I talk to you for a bit and decide you're worth my investment.

    You now have a bunch of money from me, but you have either a debt obligation to me or have given me convertible stock options. I also play a role in your Board of Directors.

    You have about 6 years to give me a return on investment before I pull the plug. In the meantime I will work towards your benefit because I want my money back.

    After I pull out by converting and selling stock or calling in my debt, you should be a thriving company and I will have reaped a decent return on investment GIVEN that I did my job properly.

    Here's the thing, though. youTube and Reever are theoretically competing entities. However, any schmoe can put down a few million on both. What that schmoe CANNOT do is take action based on insider information or engage in deliberate corporate espionage, and if the schmoe is a bit too friendly to one, the other will see him as a hostile investor. Think hostile takeover.