Tuesday, February 01, 2005

Why It's Pouring VC Cash: "The forecast for entrepreneurs during the next few months? It'll be raining—cash. Consider Flickr, a popular photo-sharing-meets-social-networking site based in Vancouver, British Columbia. When it went live a year ago, it attracted plenty of notice and even pulled in a few angel investors, such as Excite co-founder Joe Kraus. But that's nothing compared with the torrent of offers it's entertaining now. Google (GOOG) and Yahoo (YHOO) want to buy it outright, while venture capital firms are flooding it with all kinds of creative proposals. 'We get four or five calls a week from VCs,' says Stewart Butterfield, who co-founded Flickr with his wife, Caterina Fake. 'We even had a health-care fund call recently. I guess they wanted in on the excitement.'" &mdashBusiness 2.0