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Matt May is a Web accessibility specialist, and has written on the interaction of people and technology since 1995. He keeps his own weblog at bestkungfu.com, and produces a podcast called Staccato, which features Creative Commons-licensed music.

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Podcasting

« Oxford English Dictionary Adds Podcast To Its Second Edition | Main | Podshow Gets VC Funding »

August 10, 2005

Podshow joined by Kleiner?

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Posted by Matt May

The stakes have been raised. Podshow, Adam Curry's new-new-media startup, has reportedly secured $8.85 million in funding from Silicon Valley venture capitalists Kleiner Perkins Caufield & Byers. (Hat tip: Podcasting News) The proceeds will give Adam more than enough money to pay his bandwidth bill for the year.

It's not terribly reasonable to believe that this will spawn a long series of podcasting companies entering the pipeline. If you look around, there are only a few folks who aren't already publicly traded, are lashed to the podcasting sail, and may be shopping for VCs: namely, Odeo, Audioblog.com, and the podcast directories. But it is a significant step forward for the business end of podcasting.

If the facts on this are straight, this means that Podshow wants to go public. That's what KPCB does. If they paid in almost $9 million in an early phase, they're probably valuing Podshow in the hundreds of millions, either now or in the near term. Time will tell whether another big investor agrees. If you see a name like Softbank, Benchmark Capital, or Hummer Winblad jumping in with Podshow, then a lot of Silicon Valley dollars are betting that podcasting is ready for the stock market, and that will open up a lot more room at the trough.

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COMMENTS

1. Mitch Ratcliffe on August 10, 2005 11:33 PM writes...

Matt—There's already another big VC in the deal, Sequoia was in the deal.

There's no way they are valuing the company at "hundreds of millions," rather the VCs just took up to half the company for that amount. That's why KP got two board seats. The pre-money valuation on the deal might have been $12MM to $16MM.

The production-side deals, like Odeo or Audioblog are looking for money but they are not apt comparisons to PodShow, because Adam and Co. are forging a kind of network and aim to make money by selling ads into that network. It is a big step forward for the business of podcasting.

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