Canadian company GeoSign took $160 million in funding in March 2007 in what Nick then described as “one of the largest private equity financings for an Internet company in recent history.” The company seemingly had it all, yet the whole company came crashing down in weeks due to a policy change from Google. GeoSigns dirty secret was that their success was tied to click arbitrage and nothing more.
It’s a story that hasn’t gained as much attention previously as it deserves, perhaps because it’s the stuff of startup and venture capital nightmare. Canada’s Financial Post has the full story here and it’s a worthy read. Their summary reads: “A record $160-million VC investment. A rich Web strategy. A quirky founder. For a few weeks last spring, Guelph, Ont.’s Geosign had it all. Then mighty Google stirred. And it was over.”
(via SEO BlackHat)