More on Skype

The relevant point of interest for me is the early stage investors. How much did they invest, at what valuation and how much did they make? This excerpt from Siliconvalley.com gives a pretty good idea:

Together with his partner Hartenbaum, Draper invested about $250,000 into Skype in late 2002. They became the first outside investors, and enjoyed a 5 percent stake. (And while the exact numbers aren't known, they invested when Skype was valued at less than $2 million -- meaning they've seen close to a thousandfold return.)

5% for $250,000 equates to a $5m post-money valuation.

The other key point for me obviously is that Skype is London-based. The siliconvalley.com article goes on to say:

None of the purely Silicon Valley-focused firms was in on this blockbuster deal. Rimer, who spent years in Silicon Valley, explains that he had to chase down Skype -- something Silicon Valley investors aren't used to doing.

"In Silicon Valley, all the entrepreneurs go from door to door on Sand Hill Road,'' he said. "In Europe, you have to uncover every individual rock. There's no hub, and entrepreneurs aren't going to go out of their way to find you. We've got to do a lot more work.'' How did Rimer find Skype? ``We sent them an e-mail. . . . That's how it all started.''

I'm still processing the bits that are surfacing. More news at 11:00.