Mike Arrington has a post up at TechCrunch about Parakey, the embryonic startup that featured Mozilla whiz-kid Blake Ross as a co-founder. According to Mike, some of the VCs who put money into Parakey are miffed that they only got cash after Facebook bought Parakey, while Ross and his co-founder got Facebook stock, which could be worth millions. Says Mike:
The acquisition price, say two sources close to the deal, was paid in cash and was “less than $4 million,†providing investors with just a 2x return on their investment.
This is how bizarre things are in Silicon Valley: Venture capitalists put money into an early-stage startup, and double their money in just six months, while the guy who sells his company gets no money at all — just stock in a company that might someday be bought or go public with a (theoretically) multibillion-dollar valuation. And the VCs are the ones who are pissed.