VCs Make Burritos

ValleyWag keeps us informed on the latest Valley Speak. Today’s term: Rollup.

At least half a dozen groups, including private equity groups and entrepreneurs such as Ross Levinsohn, are establishing funds to acquire — or roll up — internet media companies. Here’s the logic: internet advertising is booming; established media and internet companies can’t buy everything, because they have a hard enough job integrating the units they already have; the public offering route is still closed because of excessive regulation; venture capital partnerships typically invest at an earlier stage; and some internet entrepreneurs have profitable businesses, impatience for some personal financial return, and no obvious exit. Which is where the rollup funds come in.

About David Burn

Fired up to write it down. Co-founder and editor of AdPulp. Chief storyteller at Bonehook, a guide service and bait shop for brands.