Twitter Fights

PrivCo Responds to Criticisms of Its Tumblr Report By Slinging Twitter Insults at Fred Wilson, Everyone Else [UPDATED]

Rumble!

Yesterday, Crain’s reported on some eye-popping Tumblr numbers from PrivCo, suggesting VCs reaped huge rewards, including a 5,000 percent return of $253 million for Union Square Ventures, $154 million for Spark Capital, and $77 million for Spark partner Bijan Sabet.

Almost immediately, Bijan Sabet and Fred Wilson fired back, calling the report “garbage” and refuting the specifics (without coughing up what they actually made). Dan Primack (who’s tangled with PrivCo before) calls the report “a load of Yahoo.” He says USV and Spark actually put $13 million each into the company ($350,000 of it seed funding) and got around $192 million each. Not too shabby, but not the jackpot PrivCo alleges, either.

Well, this morning PrivCo responded to the critics, on Twitter, with all the rancor appropriate to the medium. Read More

streaming music

Spotify’s Business Model Called ‘Unsustainable’

Spotify playlist (screengrab)

In 2010 Swedish music streaming service Spotify was on the rise, with a 151 percent jump in revenue. According to PrivCo, a company that tracks financial data, the bottom almost fell out for Spotify in 2011 and the service’s current model is “unsustainable.”

CNET obtained confirmation from Spotify that numbers reported by PrivCo were correct–but not news. Spotify’s losses since jumping into the U.S. market were first reported in August by the Wall Street Journal.

Regardless of who reported what first, PrivCo’s assessment might sting at Spotify HQ: Read More