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Challenge gets $4.5 million to play games

Andrew Busey has been a part of some key web technologies over the past 15 years, such as Mosaic (the first web browser) and iChat (one of the first IM apps). He also co-founded Pluck.

Yet, Busey's passion is gaming. So, a couple years ago, he started a new company in the space: Challenge Games.

In fact, this week the firm raised $4.5 million from Sequoia Capital (keep in mind that the firm has invested in such break-out companies like Atari, Electronic Arts and nVidia). The venture capitalist on the deal, Roelof Botha, learned about the company while playing its popular title, Duels.

Continue reading Challenge gets $4.5 million to play games

LinkedIn connects with $53 million in venture capital

I recently saw a presentation from Dan Nye, who is the CEO of LinkedIn. Of course, all the metrics were spiking. Then again, LinkedIn is the place for professionals to connect.

So, this week the firm has snagged $53 million in venture capital. The investors include Bain Capital Ventures, Sequoia Capital, Greylock Partners, and Bessemer Ventures. As a sign of their optimism, the valuation of the investment came to around $1 billion.

While Facebook and MySpace get lots of buzz, I think LinkedIn is a more interesting play. Basically, the company is leveraging user-generated content to build an immensely valuable database. For example, if an advertiser wants to target someone located in California that is interested in Linux systems, you will definitely get some hits. This is critically important. After all, many other social networks have a tough time monetizing things.

Continue reading LinkedIn connects with $53 million in venture capital

Sequoia Capital wants in on China's wealth explosion

Sequoia Capital is a pioneer of the venture capital space, having invested in such game-changing companies like Apple (NASDAQ: AAPL), Cisco (NASDAQ: CSCO), and Google (NASDAQ: GOOG). No doubt, they've helped create many millionaires -- and some billionaires.

Well, the same thing is now happening in China, although the wealth management business in the country is still in the early stages.

As a result, Sequoia wants to be a player and has invested several million for a 20% stake in Noah Private Wealth Management Centre, which is headquartered in Shanghai. With the cash infusion, the firm can expand into other cities as well as add new consultants and perhaps some tech systems.

It's a very savvy move. And, yet again, it should result in a big payday for Sequoia.

Visit DealProfiles.com if you want to check out other recent venture capital fundings.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements.

Sequoia Capital backs Tokbox: YouTube redux?

When Sequoia Capital does a venture deal, people listen. The firm has backed such companies as Cisco (NASDAQ: CSCO), Apple (NASDAQ: AAPL), Google (NASDAQ: GOOG) and YouTube.

Well, Sequoia is making another play in the video space; that is, it has arranged a $4 million investment in TokBox.

With TokBox, you can make video calls – for free. Also, the platform is completely web-based. You don't even have to register for the service. There is also a cool feature that allows you to embed TokBox on a blog or social network.

I had a chance to interview Chase Norlin on the matter (he is the CEO and founder of Pixsy, which is a video search engine). According to him:

"Tokbox is in a very interesting space that has yet to produce a clear winner. The pioneer and current leader of the space is Paltalk, the main difference being that they're a downloadable app. The recent funding of TokBok brings back a lot of memories of eBay (NASDAQ: EBAY)'s Skype in the early days: Find a breakthrough technology, get mass distribution, then figure out how to monetize it later. Hopefully these guys will figure out that last part quicker than Skype has."

If you want to check out other venture fundings, click here.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements.

Jive Software gets a cool $15 million

Web 2.0 is not just for consumer websites. In fact, corporate America is warming up to it.

One of the software players in the space is Jive Software, which recently snagged $15 million in its first round of venture capital. The investor is Sequoia Capital, which has backed biggies like Google Inc. (NASDAQ: GOOG) and Apple Inc. (NASDAQ: AAPL).

Basically, Jive develops web-based software that allows employees, partners, and suppliers to collaborate. There should be lots of growth -- although, the competition is tough. For example, one of the biggest players is Microsoft Corp. (NASDAQ: MSFT).

Over the years, Jive has had a stunning record of success. Apparently, there are more than 2,000 customers and revenues are over $15 million (and growing nicely). But, with backing of Sequoia, it's a good bet we'll be hearing more about Jive and its competitors.

To see more venture capital fundings, click here.

Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.

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Last updated: November 26, 2009: 01:33 AM

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