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37ventures?

Posted on July 26, 2006

37signalsIf you haven’t already heard, 37signals has taken funding from Jeff Bezos. There has been a lot of talk about this deal for a couple of reasons:

1. 37signals is notoriously anti-funding
2. No one is sure why 37signals needs the money

My take on this funding is that it really isn’t a funding. It is a buyout. Therefore, 37signals can still uphold their anti-funding philosophy and put money into their own pockets which will diversify their risk (they don’t need they money for the business - they just want to partially cash out).

37signals gains a great advisor out of the deal in Bezos and they are able to cash out some of their equity in the company making them a bit more liquid all while preserving their ideals. Not bad at all guys. Nicely done. Now, to the title of the post. I see the next logical step for 37signals as becoming investors themselves (gasp!).

Why not invest in some smaller companies just starting out now that you have some cash in hand? Entrepreneurs would love to have the signals guys as mentors and the signals guys can diversify their risk further while helping to develop some great new companies. They could also work the 37signals ideals into these companies (although I feel like they would probably only invest in companies already following their ideas) which would further their overall agenda. Makes a lot of sense to me.

You heard it here first folks. 37ventures is probably not far off.

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1 Comment so far
  1. Somewhat Frank July 30, 2006 3:51 pm

    37Signals Looking for a Blur of Startups to Fund?…

    37signals, the Chicago-based company specializing in producing simplified online management and collaboration tools, recently made some moves that have made many wonder if they are going to start funding startup ventures. Eric Olson made some very inte…