Just three months ago MySpace cofounder and CEO Chris DeWolfe found out he was being abruptly and rudely replaced by Owen Van Natta. So what does the guy who built the biggest site on the Internet from scratch do next? He raises a big pile of money, that’s what.
We’ve confirmed that DeWolfe has been pitching a number of private equity funds to raise up to $100 million for a roll up of an Internet industry vertical. In exchange for confirmation we’ve agreed to keep exactly what that vertical is confidential for now. But at least two funds, both with significantly more than $1 billion to work with, are interested. DeWolfe, as is his style, won’t comment on the fundraising.
It’s not surprising that there is such strong interest. Few executives have been able to grow a company from zero to 1,700 employees and $800 million or so in revenue. In just five years. DeWolfe may be eccentric but he’s also clearly one hell of a business man and entrepreneur. And there is no one in the world with his connections and experience in both the geeky Internet world and flashy Hollywood scene.
Case in point – a couple of funds I called today to see if they’d been pitched yet eagerly asked for an introduction. I suggested they add him as a friend on Facebook.
can you drop a hint.. like one word…
The hint is “hollywood”, no?
Apparently he won’t do health
Paris Hilton and all that? But if Hollywood is a big enough vertical to justify a portal….?
Plenty of nice office space available in Santa Monica too.
“DeWolfe may be eccentric but he’s also clearly one hell of a business man and entrepreneur. ”
I would expect most Internet entrepreneurs to be eccentric or slightly (if not completely) insane. Most are…Calacanis, Arrington…
If you’re not borderline insane in this space there’s something wrong with you. VCs shouldn’t even give money to someone unless they show flashes of insanity.
Eccentric? Does this have something to do with handshaking?
So I hear.
It doesn’t matter what the vertical, $100 million for a startup is $95 million too much.
Anyone willing to wager that his next venture will be a giant failure?
Not necessarily too much at all. Homeaway raised nearly $500mm to roll up the online vacation rental industry. Their last valuation was pretty hefty (overvalued?)
Rollups are a diff kind of startup than a couple of guys working out of a garage. It’s like raising a small fund of $100mm to make a very concentrated bet.
A “rollup” is acquiring companies. To acquire companies you need currency and dollars work best.
You’ve got me guessing if you’re serious or not MA.
First of all, this post is much more ‘cordial’ than your previous posts of OVN.
And he is only a few months into his time at MySpace.
Sure, the move from Playlist to MySpace was quick, but what VC would invest in somebody with that kind of a jumping history. Once maybe, but to actually lift him from MySpace after such a short period of time, i find it a bit suspect.
But like I said, you’ve got me wondering.
you’re all mixed up.
Yes, clearly I am. not sure how i mis-read the entire article. Must be the heat (the missing 2 day stuble in the photo is what finally tipped me off).
Vertical: Music, TV, Reality Shows or Movies? I can’t decide…
On second thought he is probably doing something no one would expect – Music-Movie-Television-Reality Show all rolled into one!!!
Can lightning strike twice? Can he capture that genie in a bottle again? What are the chances? Was Myspace a lucky fluke or was it the team? Or was it because of the news corp media spin? Maybe it was the unappreciated power of a good domain name? http://video.se...deos/tTL9aEUkGR
They say success is the best revenge.
Oh look, he found a way to promote himself. You are a complete moron. To say that Myspace was a success because their URL had “my” in it shows just how much of a kook you are. If that was the case, with all of your “my” crap domains, you’d be the biggest thing in the world. Instead, what you are is a continuous and shameless self promoter of nothing! Go away already. You waste people’s time. You use oxygen that you shouldn’t be entitled to.
“I would expect most Internet entrepreneurs to be eccentric or slightly (if not completely) insane. Most are…Calacanis, Arrington…” – @willpao
The vertical is ‘GAMING’
I hear its ball-bearings… Or latex.
travel
Travel in recession and/or depression is doomed for failure.
people investing $100M are looking longer term
asian porn
oh wait that’s the other myspace guy
his new venture is apparently trying to turn me gay, with his sexy-time picture face.
OK, but how many of those executives have been successful in their next venture? I’m just thinking about Mike McQuary or Sky Dayton.
Since when is a willingness to date Paris Hilton “eccentric”?
i had to work in a link to the paris stuff somehow.
“internet industry vertical”??, as in vertical integration?.
A one stop site, a portal perhaps?
or Im I way off?
Email marketing (spamming) platform for social networks. Would take him back to his roots, I suppose.
a cool guy but did you see how MySpace did, not a sustainable business, they started hiring like crazy all around the world, no strategy and now new CEO, layoffs, hard to keep up with FB etc…not sure a great performance as CEO
Maybe you should read the myspace book this guy never started myspace by himself but he wishes……..
Forget it. He will not be successful. That’s his destiny.
In my books he’s already successful. not sure what more somebody can do. businesses come and go, none last forever.
dm
“geeky Internet world” This is a huge stereotype as one cannot be a big time footballer, runner on college team and become a geek overnight. In fact how does a person become a geek in two years?
Thus there are entrepreneurs who detest the name geek, and nerd. Calling a person who is not that is robbing a geek and a nerd of their true identity.
That’s like calling Obama Black
when he is a Mulatto. Robbing Mulattoes of their rightful place in society 
maybe the vertical will be “tech” and his first acquisition techcrunch.com
That would be a mistake.
Should be travel, but I am sure it is not. Lots off rollup material out there and its probably cheap.
Examples –
tripwiser, triptouch, imin,homeandabroad,nileguide,
http://www.trip...rn-Florida.aspx
Roll away – maybe something will come out of this for the user.
One, he didn’t found MySpace but sure knows how to play off that.
Two, anyone who would invest a single dollar in this self-promotion focused guy needs to take a much harder look at what happened at MySpace.
Three, in the end my bet is MySpace will become a big Music vertical.
Has he frosted his hair? This doesn’t look like my first, old friend from MySpace.
“rudely replaced”
HUH?? What do you expect, Michael? A champagne sendoff to a guy that let his company flounder? Get real.
Having worked with chris for several years and having bought a company from him when at eUniverse, if i could buy stock in him, I would.
that is a highly informed opinion.
Agreed. Having worked for Chris, he is a talented visionary and deserves all the success he’s achieved. I have no doubt his next venture will do well. I know 50 other MySpacers who were there from day 1 who would all say the same thing.
Also having worked with Chris for 4 years at MySpace I can tell you that the success was not nearly a fluke and i would work with him again. How many of you grew a global phenomena and made money from it?
So says one of his lessor known over promoted favorites and who got fired from not one but two positions at MySpace over the last few months. Guys wake up and smell the coffee rather than positioning yourselves for a role in whatever he does next.
a roll-up of what? crap fire sale assets and another content universe…yawn…
Hmm. Bit of a yawner really.
I think Chris has done better negotiating large paychecks for him and his friend Tom and navigated a company with a lot of potential into an iceberg. Oh and he also managed to unnecessarily bloat Myspace to an 800 person company. Brilliant.
Squandered a large lead (though not as bad as Friendster) and failed to adopt to the very visible threat that was/is Facebook.
A non-leader he was rightly perceived as being too busy playing with Paris, etc. to lead Myspace effectively with some sprinklings of competence (Google deal and Myspace Music).
Comp didn’t match ability. Best move Rupert did was to get rid of him.
Though I do not know him but in my opinion, Chris DeWolfe is an entrepreneur and a businessman. There is a saying that ” Behind every successful businessman there are untold heart pains “. During this trying times, I believe he would produce much better results than the last time.
So, you can’t tell us what it is, but you can whore out the hype? Pathetic.
I really want to know what space he is going after. I wonder if it is tied to any of the verticals in MySpace or if it is entirely new.
As someone who worked with this guy in the past. I must say this is great news. Chris is an amazing guy and did an amazing job at Myspace. While it was smaller, totally under his control, he really made it a fantastic place to come everyday and really motivated the whole staff..
Once the company grew, and he didnt have as much insight into what was going on, it all went downhill from there.
Im really excited to hear what his next project will be.
I agree that Chris is solid. If I was a betting man, I’d bet that he’d be successful again.
Dear Chris,
Although they say you do not do health, I have developed a health care internet site idea that just might be worth your while, financially and just as importantly on a human basis.
jeffrey
Life is a game and you have to stay ahead to be successful. I would bet Chris knew once he sold Myspace the venture would one day end. He sold his first profited, his second really profited, and now he’s working on his third. Chris taught me one thing, life is about connections and diversity. In high school he went around shaking everybodys hand.
His next venture is actually going to be a rival to the site Last.fm. Unbeknown to many, Chris has a keen interest in this sector. People who have worked with him can tell you that.
I’m not entirely sure what a start-up like last.fm could do better than Last.fm already does, but there is always room for improvement.
Keep an eye on this space, seriously though. We’re not wrong here.