Comments on: Breaking: Samwer Brothers Invest In Facebook

By: While other German VCs wilt, the Samwer brothers invest and clone like mad

While other German VCs wilt, the Samwer brothers invest and clone like mad — Wed, 07 Oct 2009 13:22:23 +0000

[...] only to sell their shares a few months later and use the proceeds to invest in Facebook (since January 2008). That’s not to forget their earlier investment in LinkedIn. The Samwer brothers Oliver, [...]

By: Jobs

Jobs — Sun, 06 Sep 2009 20:14:31 +0000

So far they did a great job with #fb in Germany

By: Netviewer Scores $9 Million From T-Online Venture And The Samwer Brothers

Netviewer Scores $9 Million From T-Online Venture And The Samwer Brothers — Wed, 29 Oct 2008 00:19:44 +0000

[...] and the European Founders Fund (the investment vehicle of the infamous Samwer brothers who recently invested in Facebook) have invested a total of €7 million or nearly $9 million in Netviewer, a provider of [...]

By: Want Some Facebook Stock At A $3 Billion Valutation? We Know Who To Call.

Want Some Facebook Stock At A $3 Billion Valutation? We Know Who To Call. — Sat, 28 Jun 2008 19:26:54 +0000

[...] may have talked a few investors, including Microsoft, Hong Kong billionaire Li Ka-shing and Germany’s Samwer brothers, into investing in the company’s preferred stockat a $15 billion [...]

By: Bracia Samwer inwestują w Facebook | EBZY - domena przejęta przez freed.pl

Bracia Samwer inwestują w Facebook | EBZY - domena przejęta przez freed.pl — Wed, 09 Apr 2008 12:39:32 +0000

[...] Miachael Arrington napisał, że bracia Samwer (inwestorzy między innymi w portalu Nasza-Klasa.pl) są zainteresowani inwestycją w Facebook. Według informacji na TechCrunch ta inwestycja jest już potwierdzona, komentarze pod wpisem sugerują objęcie 0,3% udziałów za 60 mln USD. Co do wysokości tej kwoty (cytat z jednego z komentarzy): […] they got a cheaper valuation then Microsoft. In exchange they offer their help in entering the German market. [...]

By: Facebook taps German entrepreneurs for more cash | money news blog

Facebook taps German entrepreneurs for more cash | money news blog — Fri, 29 Feb 2008 04:41:42 +0000

[...] another $60 million. Now, it has turned to three German entrepreneurs for more money, according to TechCrunch. The Samwer brothers, Alexander, Marc and Oliver, have reportedly invested in Facebook, though [...]

By: Moritz K.

Moritz K. — Mon, 21 Jan 2008 12:15:22 +0000

regarding size of investment, WallStreet Journal writes :

http://online.w...2203992163.html

Facebook Gets Big Investment
By Kevin J. Delaney and Vauhini Vara

The Samwer brothers of Europe have agreed to invest in social-networking site Facebook Inc., according to a spokesman for the brothers.

The size of the investment is roughly $10 million to $15 million, said a person familiar with the matter.

By: ONLINE SERVICES/INTERACTIVE MEDIA « Daily Marauder

ONLINE SERVICES/INTERACTIVE MEDIA « Daily Marauder — Thu, 17 Jan 2008 01:31:50 +0000

[...] strategic partners in Europe. The Samwers also hold investments in LinkedIn, among other sites. (http://www.tech...est-in-facebook [...]

By: Webrazzi

Webrazzi — Wed, 16 Jan 2008 22:48:49 +0000

Facebook’un yeni yatırımcısı: European Founders Fund…

Bugün TechCrunch‘da çıkan ve Micheal Arrington‘un kesinlikle doğru olduğunu ancak henüz Facebook tarafından doğrulanmadığını bildirdiği yatırımın kaynağı olan European Founders Fund yakında Türkiye’de adını çok …

By: Daniel Thomaser

Daniel Thomaser — Wed, 16 Jan 2008 14:36:41 +0000

I guess on the first hand the samwer brothers are investors. they sold studivz with profit to holtzbrinck. Now they want to make profit with facebook and I am pretty sure, that they don’t give a sh… about studivz today.

By: Gandolf Hübinger

Gandolf Hübinger — Wed, 16 Jan 2008 13:33:13 +0000

Daniel: You are right, the 750 mil valuation is incorrect. Insufficient research on my side.

However, I see a significan chance, that FB buys StudiVZ after giving them a beating in the first months. That is if they want to grow very quickly in Europe. If they have more time before the IPO this will be not necessary. I am convinced that FB wins in the end.

This ist stunning: In an Interview

http://www.spie...,528812,00.html

Alexander Samwer explains that “FB is light years ahead of StudiVZ” (with regard to the technological perspective). Together with FB he will be openly competing against StudiVZ.

I wonder: Did he not foresee this situation when he sold StudiVZ to Holtzbrinck in Dec. 2006?

By: Daniel Thomaser

Daniel Thomaser — Wed, 16 Jan 2008 11:46:47 +0000

@Gandolf & Thomas

the 750 mil valuation is totally wrong.
Facebook wanted to buy studivz and offered a 4-6% share, which would be worth today about 750 mil. that’s all and that’s history.

By: Daniel Thomaser

Daniel Thomaser — Wed, 16 Jan 2008 11:30:04 +0000

@Fabian
Smartest thing they could do. fbs entry in the german market will have a huge impact, if they do it right. and the samwer brothers know what to do. it’s not about the money, it’s about the know-how.

StudiVZ is stuck to students and won’t succeed in opening itself to a broader target group. In addition to that the studivz infrastructure and management seems to be too old-fashioned to compete with fb.

By: Jon

Jon — Wed, 16 Jan 2008 10:46:17 +0000

These brothers have had a heck of a good luck run with previous ventures… I find them more interesting then Facebook

Jon
http://buzvia.com – Share Influence

By: Thomas Welzer

Thomas Welzer — Wed, 16 Jan 2008 04:45:59 +0000

Gandolf: Where do you have your 750 mil valuation for StudiVZ from?

By: Andy Wood

Andy Wood — Tue, 15 Jan 2008 20:18:07 +0000

Overvalued – certainly because thats what Web2.0 is. But its either a case of the ‘Emperor’s New Clothes’ or the Samwer Brothers have had site of the Facebook business strategy. No doubt a content play ….

By: Gandolf Hübinger

Gandolf Hübinger — Tue, 15 Jan 2008 20:16:01 +0000

Paul: I think Samwers have already monetized (some?!) of their investment into lokalisten.

Fabian: Why does it not make sense for the Samwers? They already made a lot of money, now they compete against the businesses they co-founded together with the “largest gorilla in the jungle”. They may buy back StudiVZ for a discount (but still with a huge profit for Holtzbrinck – the Company was sold for 100 mil and is currently valued around 750 mil). Or they may simple sweep StudiVZ out of the market.

By: Fabian Schonholz

Fabian Schonholz — Tue, 15 Jan 2008 19:50:12 +0000

I really would like to understand how this makes sense. I am all good for recapitalization or additional funding but …. in this case … why? I do not get it.

By: Paul Schleicher

Paul Schleicher — Tue, 15 Jan 2008 19:49:57 +0000

I´m from Germany and used Facebook and StudiVZ. Lately I stopped using StudiVZ cause more and more of my German friends are signing up on facebook and its weird to use two such similar communities. I now receive every day German facebook friend requests from people who are also on StudiVZ. The only friends who are not on facebook are friends who are bad with english. As soon as facebook is available in German this trend would increase for sure. Facebook is just a better user experience. Still to merge with an existing German copy would speed up the growth and implementation of facebook. StudiVZ´s biggest benefit maybe that they also have the France (StudiQG), Italy (StudiLN), Spain (EstudiLN), and Poland (StudentIX).
They never tried to force on the UK, bc Facebook is just to huge and studiVZ definitely the worse alternative.

And the Samwers, they are also invested in Lokalisten.de which is a competitor of StudiVZ. Is this kind of investment strategy correct? Invest in two competing companies? Is this also common in the US? For Startups in Germany there are not a lot of alternatives to the Samwers as investors, but to me it looks like the Samwers are taking benefit of it. Would you sign an investor contract with the term that your investor can invest in your direct competitor?

By: Gandolf Hübinger

Gandolf Hübinger — Tue, 15 Jan 2008 19:41:27 +0000

Kelly:

Having the Samwers on board as an investor is one of the best things that can happen to a start-up in Germany – for companies that are built to sell, not necessarily to last.

Copying a company (together with an former intern), then selling it (knowing that the company does not have the technological potential as the original ?!) and then, after twelve months, aggressively competing against the very same company. I call this more than witty.

The Samwers know that StudiVZ will not be able to successfully compete against FB. They will crush the very same company that they made a fortune with and position themselves as Zuckerber’s governors in Europe. Thus, using the enormous traffic FB creates to fuel their other investments. What a smart move!

By: Chris

Chris — Tue, 15 Jan 2008 19:11:12 +0000

German magazine Der Spiegel has an article that quotes one of the Samwers as saying he’s “proud” and they see a lot of promise in Facebook. Original article (in German) here http://www.spie...,528802,00.html crappy Google translation here http://64.233.1...,528802,00.html

It’s a done deal all right.

By: Kelly Smith

Kelly Smith — Tue, 15 Jan 2008 19:10:46 +0000

Gandolf:

I think you’ll find that any successful business person has shortcomings in one form or another. Look at Bill Gates. True, Samwers are probably better networkers and dealmakers than they are technology visionaries but at the end of the day they have an uncanny ability to make money and that is largely the reason most of us work instead of vacation all year.

By: Gandolf Hübinger

Gandolf Hübinger — Tue, 15 Jan 2008 19:00:56 +0000

Correction: StudiVZ was sold in late 2006.

This article says

http://faz-comm...8/1/15/769.aspx

the Samwers get a discount for helping FB with its expansion in Europe.

Hence, these guys help crushing the business of their formerly owned FB copy StudiVZ (now owned by Holtzbrinck). I guess Holtzbrinck loves doing business with them in the future.

By: Gandolf Hübinger

Gandolf Hübinger — Tue, 15 Jan 2008 18:48:06 +0000

Kelly: It totally agree. Smart and aggressive investors with a remarkble track record.

However, I see them more as dealmakers, not so much as innovative business people. Take a look at their track record at Jamba.

They startet StudiVZ with Ehssan Dariani, a man who was a previous FB intern. FB also took a deep look into buying StudiVZ in 2005 (presumably did not investo because of “security issues”). Now the same people that copied FB together with a former FB-intern get an opportunity to invest in the company. Why?

By: Gandolf Hübinger

Gandolf Hübinger — Tue, 15 Jan 2008 18:36:31 +0000

StudiVZ and it’s alikes all around Europe (some of them are Samwer investments) face serious competition with FB recently announcing it’s entry into the German market. Take into consideration that, despite it’s relative size, StudiVZ (the German FB copy) is still the 2005 version of FB (the original) and has not shown any technological innovation since its aquisition. Take a close look at the current managment, too.

How about this: First the Samwers sold StudiVZ to Holtzbrinck for 100 mil. in Dec. 2005, then FB buys from Holtzbrinck to get a stronghold in the German market. Samwers have the connections and the reputation to mount such a remarkable deal.