WTF Money

‘WTF Money’ is the opposite of ‘FU Money’ (FU Money is when someone has so much money – like Mark Cuban – they can essentially do what they like). ‘WTF Money’ is money that are not yours, but you are in charge of it. ‘WTF. Its not my money – risk it’.  VC money is ‘WTF Money’.

So here are some companies with over $100M WTF money:

Ning.com – $119M – a lot have already been written on this. It is well known that investors invest in the people and the team. Marc Andreessen – check. Gina Bianchini??? What is her track record. And what is all that money used for?

Chegg.com – $144M – good idea for a text book rental site. But at $144M, how is that justified?

Twitter  – $155M – there is no ip or tech. The team is good and traction is good. But at $155M – where are the money going? Possible acquisition money?

Rockyou – $119M – why? how? WTF

History have shown that some of the successful companies with large exits have received only small rounds. Examples include Google, Youtube and more recently Mint.

Will be interesting to see the ROI (if any) on these $100M+ ‘WTF Money’ companies.

(The investment numbers listed here came from Crunchbase – so don’t blame us if they are wrong)