Social Media is flourishing like anything and it is simply because of growing interest of people in different social networking sites.That’s why social media is attractive t0 investors as well because they see their huge profit in it, more or less Social media has taken the shape of a strong business and it is good enough from investment point of view.
In the past, investors used to invest in stocks, shares and other import and export kind of businesses but since 10 years trends have been changing and most of them view social media as mode of safe, reliable and profit oriented field to invest capital.
Following are the Top 5 Investors in Social Media:
Digital Sky Technologies
Digital Sky Technologies also known as DST is an investment firm based in Russia, a billionaire Yuri Milner founded it in 2005 and since then it invested heavily in different social networking websites like Facebook, Groupon, Zynga and many other internet firm of China. When the value of Facebook was US$50 billion, DST along with Goldman in a joint venture deal invested US$500 million. It is said that Goldman also invested in DST and some of the partners of DST were member of Goldman, this association offered them a reason to bind in business relationship.
In 2009, Digital Sky Technologies invested in Facebook and it is expected that it will further invest above US$ 1 billion in upcoming years.
Elevation Partners as reflected from its name is a private equity firm which offers huge capital investments for the growth of companies basically a private equity firm associated with management to improve expansion and prosperity through the blend of planned capital and operational approach. It was founded in 2004 and Facebook is among its portfolio companies and it possesses 1 percent stake for worth US$ 90 million in Facebook.
Elevation Partners invested round about US$95 million in shares and preferred stocks of Yelp in April of 2010. At present, it operates portfolio in Asset under Management (AUM) with projected US $1.9 billion.
Sequoia Capital is most renowned and thriving Venture Capital Firm, it is quite an old firm founded in 1972 and made a huge investment in many famous global companies like Google, Apple, YouTube, PayPal, Cisco, Yahoo and Electronic Arts and this investment has helped these firms to grow their businesses. At present, its portfolio is quite cosmic and it is doing lots of investment in social media which includes LinkedIn, YouTube and Tumblr.
Additionally, it is also doing investments in many “Baby Firms” for instance Blippy, Airbnb, Blippy, and ChurnLab. Hopefully, its investment in these firms will provide them an edge to grow.
Kleiner Perkins Caufield & Byers
Kleiner Perkins Caufield & Byers also known as KPCB came into existence in 1972, their motive is to develop a close relationship with the corporations in which it can make investments. KPCB claims of having 150 IPOs in the vast portfolio of corporations since it founded.
Former CEO of eBay, Meg Whitman has recently joined KPCB as its strategic advisor, KPCB recently publicized that it has intentions to invest in social media with US $250 million. You will be surprised to know that Facebook the leading social media firm has patronage the fund just like Zynga, Amazon, Comcast, Allen & Co and Liberty Media.
Kleiner Perkins Caufield & Byers recently invested in Cafebots, Flipboard, Jive and Lockerz; all of these have been qualified as early set ups in the field of social media.
Andreessen Horowitz is among the most recent Venture Capital firms and it was founded in 2009. Andreessen Horowitz is the co-founder of Netscape and he developed Opsware in collaboration with Ben Horowitz. Later on, Hewlett-Packard acquired the Opsware for US $1.6 billion.
Andreessen Horowitz instigated the business with US $300 million raised it to US $650 million in the later half of 2010. Initially, investments in social media started with Skype and with the passage of time investments were made in Twitter, Group on Digg, Zynga, Foursquare, and Facebook.
The craze of people for social networking sites is inclining the investors especially Venture Capital firms to add their heavy investments and earn maximum pie.