Big Tech Buyouts: How 10 Internet Startups cashed in Big

This is a special snippet post summarising the Big Tech Buyouts article from BusinessWeek, by Douglas MacMillan. All images copyright of BusinessWeek.

Silicon Valley angel investor Jeff Clavier “It’s a good time to be an investor because there are tons of opportunities out there that are interesting,”.

What’s good for investors is an outright bonanza for entrepreneurs. Not only are established Internet acquirers such as Google (GOOG), Yahoo! (YHOO), and News Corp. (NWS) spending lavishly on budding properties, companies such as Hearst and Getty Images (GYI) are placing smaller, strategic bets.

But what changes when these company founders see their handiwork snapped up by the highest bidder? Sure, some of these lucky ducks will plow proceeds into the next big thing. But many opt to stick around, keeping a hand at the tiller long after the ownership changeover.

Mozy

Founder: Josh Coates
Acquisition Price: $76 million
Buyer: EMC
Funding: $1.9 million from Wasatch Venture Fund, Tim Draper, and Drew Major

Sling Media

Founders: Blake Krikorian (pictured), Jason Krikorian
Acquisition Price: $380 million
Buyer: EchoStar Comunications
Funding: $10.5 million from Doll Capital Management, Hearst, and Mobius Venture Capital; $46.6 million from Allen & Co., EchoStar Communications, Goldman Sachs (GS) and Liberty Media

Zimbra

Founders: Satish Dharmaraj (pictured), Ross Dargahi, and Roland Schemers
Acquisition Price: $350 million
Buyer: Yahoo!
Funding: $5.5 million from Benchmark Capital and Redpoint Ventures; $15 million from Accel Partners, Benchmark Capital, and Redpoint Ventures; $14.5 million from Duff Ackerman & Goodrich, Inventures Group, and Presidio STX

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

Parakey

Founders: Blake Ross (pictured), Joe Hewitt
Acquisition Price: Less than $4 million, according to TechCrunch
Buyer: Facebook
Funding: Less than $2 million from Sequoia Capital, according to TechCrunch

Photobucket

Founders: Alex Welch, Darren Crystal
Acquisition Price: $250 million, according to TechCrunch
Buyer: Fox Interactive Media
Funding: $3 million from Insight Venture Partners; $10.5 million from Trinity Ventures

Postini

Founder: Scott Petry
Acquisition Price: $625 million
Buyer: Google
Funding: Undisclosed, from August Capital, Bessemer Venture Partners, Mobius Venture Capital, Pacific Fund, Summit Partners, and Sun Microsystems (JAVA)

Feedburner

Founders: Eric Lunt, Steve Olechowski, Dick Costolo, Matt Shobe
Acquisition Price: $100 million, according to TechCrunch
Buyer: Google
Funding: $8 million from Mobius Venture Capital, Draper Fisher Jurvetson, Portage Ventures, Sutter Hill, and Union Square Ventures

Pump Audio

Founder: Steve Ellis
Acquisition Price: $42 million
Buyer: Getty Images
Funding: $2.5 million from Greycroft Partners and High Peaks Venture Partners

StumbleUpon

Founder: Garrett Camp
Acquisition Price: $75 million
Buyer: eBay
Capital: $1.5 million from Ram Shriram and Mitch Kapor

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