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Vringo scoops up $12 million

This morning Vringo announced that they've scored $12 million in series B investment from Warburg Pincus.  I've personally been skeptical of video ringtones.  It seemed a bit like screen savers for the PC — popular but easily duplicated.  Clearly Jon Medved and his team are executing, raising money, proving me wrong and that the old saw that traction attracts capital is as true as ever. 

{ 2 comments… add one }

  • Alec July 31, 2007, 5:41 am

    Hmmm… I don't believe that I said that they had a win because they had a series B, Dean. I believe I said that they had raised money because they had demonstrated the ability to execute and had traction. Minor quibble, I guess, because everything you've said is true.

  • Dean Collins July 31, 2007, 8:51 am

    Alec, just because someone raised some money doesn’t make it a good business (or a good business plan).

    A long time ago I came to the realisation that the money jocks are too stupid to know what does and doesn’t make financial sense.

    As such it’s my obligation to the IT community to only represent clients whose projects will not only get funded (as you can pretty much get anything funded if you spin it the right way) but projects that are actually going to make a return for it’s investors.

    If all you are looking to do is raise funding then;
    1/ You’ll make a buck
    but
    2/ You wont be doing the IT community any good in the long run.

    Personally i believe Video Ringtones do make financial sense – I just didn’t like the way you posed the post that because they made “series B” they had a win. Clearly there is a lot of ‘execution’ between here and a successful business model.

    Regards,
    Dean Collins
    http://www.Cognation.net

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