According to the New York Times (reg req’s) , instead of waiting for an IPO, Eharmony founders are cashing in on their recent $110 million fundraising efforts.
Supposedly, 116 people benefited financially when the company, which was started in 1999, announced last December that it had raised $110 million. The word within the venture capital community is that less than $30 million of that sum went into the company coffers.
This type of deal is happening more often. Pay out some raised capital to executives and early employees, and ease the desire to go public or worry about losing it all.
Who could buy Eharmony at this point? Yahoo is the only company out there with the resources available. Match could, but that money might be better spend fixing their site and attracting new members from cheaper properties.
[tags: eharmony]
