John Borthwick, Betaworks
Betaworks is a New York company that produces other companies. It rounds up hackers, designers and founders and tests multiple startup ideas at once, such as hot iPhone game Dots and a GIF search engine.
But Betaworks is not a venture capital fund. So how does it have the money to produce big hits? Recently, a few acquisitions have helped fuel it.
According to Ben Popper at the Verge, two startups Betaworks was involved in, Summize and Tweetdeck, yielded Betaworks $50 million in cash and stock. Summize was acquired for $15 million by Twitter in 2008; Tweetdeck for $40 million in 2011.
In 2008, Twitter was worth about $150 million. Now it's worth multiple billions.
Betaworks also made a good chunk of change with its investments in Groupon, OMGPOP (which was acquired by Zynga) and Tumblr.
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