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Venture capital funds are desperate for profits, and they're clamoring for Voodoo to buy BeReal — even if they don't get as rich as they had hoped.
BeReal was on VCs' wish lists – as millions of Gen Z users flocked to share photos of what they and their surroundings would look like in 2022. Which in turn led to a $585 million valuation from Coatue Management and DST Global that same year. “, writes the information. However, the growth of the application has slowed down, but it was recently sold to the French gaming company Voodoo for $ 537 million. The online newspaper believes that in a time of so-called underselling, this is something to celebrate.
– You see the buyout market opening up after being frozen since the end of 2022, says Natalie Dillon, a partner at venture capital firm Maveron, which focuses on consumer technology.
She added that more sales like this are on the way due to pressure from venture capital fund investors. Funds must at one point or another begin paying money to the limited partners. The sale price ensures that investors will get some money, but it is far from the 10X return that VCs were hoping for. The four-year-old startup has raised a total of $90 million from venture capital firms including Paris-based New Wave, Andreessen Horowitz and Accel. These companies will benefit from the deal, although subsequent investors, such as Kuato and DST, may not realize significant profits.
In 2022, the number of daily active users of the app reached 8 million for the month of July. The last investment round before the sale valued BeReal at about $100 per daily active user, and the company has not yet — and never will — generate any revenue, The Information writes.
It remains to be seen whether the potential exit wave will extend to Norwegian territory.
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