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That comment was silly and this article is sillier. Neither are grounded in sound reasoning, but both meet universal acclaim at Hacker News. There goes the neig
by falsestprophet 17y ago
That comment was silly and this article is sillier. Neither are grounded in sound reasoning, but both meet universal acclaim at Hacker News. There goes the neighborhood.
So is there evidence Russians are investing in US technology start-ups as status symbols?
No.
Firstly, the "Russians" behind these investments are really just one fund called Digital Sky Technologies.
Secondly, although this fund is located in Russia and is composed in part of Russian money, the fund also includes investments by Goldman Sachs and Tiger Global.
Thirdly, neither the Facebook nor Zynga investments are clearly recklessly lavish. Techcrunch observed that "no one else wanted in at Facebook at that $10 billion valuation." That is the very definition of being a high bidder and, of course, being the highest bidder is required to win. Tiger Global, Institutional Venture Partners and Andreessen Horowitz each invested in Zynga at the same valuation as "the Russians."
So have "the Russians" involved Goldman Sachs, Tiger Global, Institutional Venture Partners and Andereessen Horowitz in the private equity equivalent of a coke and hooker binge?
I don't think so. Maybe DST is just another reasonably managed venture fund and Techcrunch and a random Hacker News commenter are off the mark.