TechCrunch UK's Mike Butcher reported last month that nameless venture capital firms were valuing True Knowledge at about £20million ($40million), and circling to invest. My post-Powerset thoughts were...
- what is the balance between validation on the back of Microsoft interest in the space, and a reduced valuation on the back of the disappointing price Microsoft (allegedly around $100million) paid? Does the Powerset/Microsoft deal increase or decrease True Knowledge's notional valuation in the eyes of the market?
- although UK based, is True Knowledge forced to look to the United States to meet the ambitions Mike attributes to them with "The idea is to use a large series A round to accelerate the startup to almost Google-like recognition levels in about two years"? With European investing powerhouses like 3i leaving the early-stage investment space, where do European startups have to look for that 'large series A round'?
Thoughts to ponder, as the blogosphere continues to chatter about Powerset; a company that may well have been acquired more for the talent than for the product.