Accel and Benchmark have completed a $12 million investment into Israeli start-up Zlango. Maybe I’m just not getting it, because immediate thoughts are:
[Update]
So I asked Judy (Gibbons) of Accel this afternoon about the Zlango investment. She gave me a plausible explanation of the capital deployment and revenue model. I don’t think Accel would thank me for discussing here, but she’s addressed my key questions: why $12 million and where’s the revenue model.
Filed under: Venture Capital
Face it Jason, you’re getting too old to understand the youth market.
No doubt about that.
It’s the venture “economics” that has me scratching my head. Maybe I’ve been in Europe too long and have become a cynic…
lets not forget that benchmark invested in second life. arguably this is far more useful.
Useful, perhaps. Able to generate revenue, big question mark.
Even if they’re selling/licensing to operators, I can’t see the multi-million dollar revenue stream here.
Habbo hotel should have hit the $70 million mark last year. I’m guessing that Second Life is going to be behind that (b/c that’s a serious revenue stream), but revenue generating nonetheless. I’d be very surprised if zlango can produce those levels of revenue.
have to say i don’t get it either. this is marginally interesting – even according to my three kids. its like second life – i am just waiting for the clown to pop out of the screen and reveal that all this has been a joke that i am not privy to.
Also if anyone has seen the fabulous Jean Shepard story/movie called, “A Christmas Story” you might remember that the 11 year old protaganist uses a decoder ring very much like this to decode a message from little orphan annie. the message ends up being “always drink your ovaltine” – Will that be the revenue model? pictographic coded adverts?
when do we get back to building killer systems!
You must have gone through a lot of trouble trying to write “Me say zlango no worth 12 million money” in zlango language, instead of just typing it.
If so… then isn’t this a clear sign that this investment will fail ?
(thank god you also wrote the words under the icons so i could understand what you wanted to say!)
Yes, it was relatively painful.