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Re: Missing the Skype VC Opportunity
by
blogger_brent
About 100 VCs passed on Cisco in the 1984/85 time frame because they didn't believe in the packet switched network business, but most passed because the founders (Levin?) were complete nutcases. While David was being honest about the Skype business model, most VCs are hesitant to say "the founders just didn't pass muster". And they can be very wrong. Don Valentine at Sequoia made the bet on the Levins because he felt he could find management to replace them. Which he did and the 1,000x return is, of course, legend.
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