Some venture capitalists are smart – they make solid investments in good companies with long term potential. Others are not so smart. They make “me too” investments in companies that look like nothing but short-term cash flow generators, get fooled by grand exit strategies that never pan out, and regret their decisions almost as soon as they make them. But then again, its not their money, and with a fixed vig of 1%-2% per year on commitments, why should they care.
So it comes as no surprise to me that VentureWire is reporting WhenU.com just picked up $20 million in Series A financing.
WhenU.com is synonymous with spyware/adware. If you run a quick search for the company, you get them at the top of the list, along with a plethora of anti-spyware ads. The company was even taken out of Google and Yahoo! search indexes last year for cloaking their site with high ranking keywords, proving they can’t pull their weight without gaming the system.
Of course, in the grand PR plan, WhenU has set up an anti-spyware portal so people think they are really good guys. Maybe that is what they pointed their investors to when pitching them the business plan.
Nonetheless, I wouldn’t be surprised if the VCs involved (who I haven’t found yet), loose their arses on this one, and frankly I won’t care either.
The investment firm on the WhenU deal is ABS Capital Partners. You can read their press release on the deal here.