A simple idea is enough to raise $2.5 million in a first round of capital

Posted on October 1, 2007
Filed Under web 2.0 news |

VentureBeat, one of my favorite sources of information has just released news that Wikinvest, a site that allows investors to collaborate by editing pages about stocks and other opportunities, has raised $2.5 million in a first round of capital.

What I can’t really understand is the reason why anyone should be interested in investing such a huge sum into a business that is likely to provide very little or even no revenue at all. Money is the objective of building sites in almost 100% cases.

It is obvious that nowdays there are so many investment opportunities that we are witnessinga sort of “overburning”. Quality is not high enough to attract millions of users, who might generate cash flows.

This Wiki site looks nice because it provides at least some data, but I can’t really think of any serious investor to base his/her decisions on such a site. In my opinion traffic will drop soon as people realize that it’s better to reat the Financial Times or the WSJ instead of spending time on such sites.

If you liked it promote it!

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One Response to “A simple idea is enough to raise $2.5 million in a first round of capital”

J S on October 3rd, 2007 3:43 am

Advertising rates are higher on investing portals than almost anywhere else on the web - order of magnitude higher than run of the mill site. You will notice that Yahoo, as part of its recent strategic reorganization, is focusing its efforts on yahoo finance - because a large part of their revenues come from yahoo finance advertising. So investing portals can do quite well for themselves if they get traffic.

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A simple idea is enough to raise $2.5 million in a first round of capital

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