We knew something was up when Shawn Fanning’s startup Rupture, an unlaunched social network around gaming, delayed and delayed their launch. Well, it turns out, say multiple sources, that Rupture was able to do what Parakey pulled off in 2007. Get acquired before launching, that is.
We’re shaking trees to find out the buyer and size of the transaction. But Fanning, who founded Napster, is having a good month. Just a few days ago we reported that his other startup, SnoCap, was acquired by Sequoia-backed Imeem.
Rupture has been tight lipped about releasing any information at all about the company, but as far as we can tell they raised just a single round of angel financing, in 2006. More as this develops.
Update: A source close to the company says we jumped the gun on this one a little bit, and that negotiations are still ongoing. No term sheet has been signed, although there are discussions going on. Also, the company raised another round of capital over the summer. Baseline Ventures led that round.
Microsoft?
The 5 games featured on its front page are either PC or Xbox360 games.
Congratulations to Shawn Fanning. I loved Napster in it’s heyday and now it is nice to see that he wasn’t a one hit wonder and he truly has got skills.
Music industry shuts down Napster – millions in market cap up in smoke
Have your venture get bought before it is even launched, while working on two companies at the same time. Priceless.
congrats. a little bit like xfire, no? that was more IM groups about gaming.
Wow it goes to show VCs invest in the people and not just the products.
Electronic Arts.
well, I just can tell you, that it wasn´t me!!
@1
Yeah featured game is “Halo 3″ on Rapture’s main page. Seems like MS got their hands on Rapture.
@ 5
You could be correct too. Lets see what Micheal finds out ?
Who said I was guessing?
I thought Seth Green created Napster?
I’ve used the closed beta of this.. I hope whoever bought it didn’t pay to much. But it just goes to show.. publicity sells companies.. (at least at this stage of the game).
Wow… it’s either a totally mind blowing system, wickedly under-priced or the promotion of said system would put P.T. Barnum to shame. Either way, congrats!
Jon
http://buzvia.com – Where’s your traffic going?
Given the $10 million invested in Snocap how good an exit Fanning (or the VC’s) got is questionable. Both Morgenthaler and Ron Conway were in both Snocap and imeem.
Has the sale price been made public?
Michael you should check into the Snocap funding info you have put up. Snocap raised 15 million in Series C alone with Courtsquare Ventures in early 2006 ( http://www.stan...s%20Release.pdf ). Pretty sure they raised much more than the 10 million you mention in your post. Having followed SnoCap since the begining, I don’t see how anyone got out smiling. cheers.
they were bought by ea. I saw ron and shawn negotiating the deal in soma.
Mark
Re: I don’t see how anyone got out smiling. cheers.
I’ll bet you imeem.com is smiling.
hey shawn congrats!!! finally i am seeing what i always wanted to: vc’s are investing in talent and not just the product.
Maybe i should have taken that offer when Shawn was trying to talk me in to joining a few weeks ago!
EA is smart to acquire social networking DNA…it would end up being a disaster if they tried to build it in-house. Much of their in-game advertising staff has come from outside the company, too.
@chris – I said on the way out – as in seller, not buyer as in imeem. And as for them buying it – remains to be seen what they really got for the price they paid. That’s for imeem to figure out.
everyone lost money—get it right!
other than his name attached, shawn fanning hasn’t been involved with snocap in years.