Missing the Skype VC Opportunity

by Mark Evans at 12:33PM (EDT) on September 21, 2005

While there has been a lot of attention on the VCs that hit the jackpot with Skype
(Draper Fisher Jurvetson, etc.), there are likely dozens of VCs that took a pass when the company was seeking capital.
At a VON panel today on VC investment in VOIP, David McCarthy, managing director with BCE Capital, said he didn't jump on Skype because he couldn't figure out their business model.
"Shame on me but I generally pass on things without a business model and will likely do so again in the future.
" Kudos to McCarthy for being honest about what coulda/shoulda/mighta been but truth be told, there are hundreds of intriguing technology companies like Skype looking for private equity.
If they're really, really lucky, it all works out for everyone but the vast majority never go anywhere.



I think it was wise to behave the way most VCs did.
When you invest money you must consider the reality, not the unpredictable...
Which is exactly what happened, may be if eBay had waited a little bit, they wouldn't have wasted their money...

VCs think the Market ruled by wise and competent managers, that is why sometimes they miss the point..
But it is not so easy to predict the unpredictable...

Patrizia