There’s a lot of talk about crowdfunding and the disruption of venture capital in tech and VC circles. But while people are busy talking, VCs are hard at work at finding the next huge successes.
Techcrunch posted a very interesting story of Plain Vanilla, the makers of QuizUp. For those of you who don’t know it (where do you live?) QuizUp is a marvelous social trivia app which scored 1 million downloads in 8 days and is the top free app in the iOS App Store. It’s incredibly well executed and addictive.
The most interesting part of the story for me is the additional funding round, which in my opinion has the potential to go down as one of the best investments of the year.
Sequoia and e.ventures found about QuizUp while it was in beta and rushed like crazy to close a round and wire the money before the app launched in the store. If they had waited just one more week the round could have been extremely more expensive and crowded.
Plain Vanilla was basically faced with the following question: accept $2M from two leading investors pre-launch or wait for the launch and either raise at better terms thanks to the traction or potentially die if it does’t go that well. I think they made the right choice.
This demonstrates what sets great VCs apart. Massive congratulations to Sequoia and e.ventures for getting into it before everyone else even noticed.