The more I read about this kid, I'm baffled that a16z would invest such a large amount in the company. The product can be duplicated and currently only has a stranglehold on the rap-lyrics market - i.e. annotation for any other segment is still up for grabs and can be done by a duplicate product.
Having said that, the stability and reliability of the founder must have been taken into account in determining the value of the venture. $15/16 million or whatever the amount was seems crazy high considering how much of a loose cannon he appears to be. Wouldn't surprise me to see them slowly diminish his role.
Comments
The more I read about this kid, I'm baffled that a16z would invest such a large amount in the company. The product can be duplicated and currently only has a stranglehold on the rap-lyrics market - i.e. annotation for any other segment is still up for grabs and can be done by a duplicate product.
Having said that, the stability and reliability of the founder must have been taken into account in determining the value of the venture. $15/16 million or whatever the amount was seems crazy high considering how much of a loose cannon he appears to be. Wouldn't surprise me to see them slowly diminish his role.