NY TIMES -- Oct 16 -- Jonathan Abrams, Friendster's
founder was in a spot in late 2003. He could take the safe bet and accept $30
million from Google for Friendster or sell a stake for $13 million and build
Friendster into an online powerhouse worth hundreds of millions, if not
billions. Abrams spurned Google and charted his own course. In retrospect, he
should have taken the $30 million. If Google had paid him in stock, Abrams would
be worth $1 billion today. "Basically, Jonathan wanted to meet girls," said Mark
Pincus, a Silicon Valley entrepreneur who provided Abrams with seed money at the
end of 2002. "He told me himself, he started Friendster as a way to surf through
his friends' address books for good-looking girls." Doerr and Kagle took seats
on Friendster's board, as did investors, former Yahoo CEO, Timothy Koogle,
Paypal co-founder Peter Thiel, and Ram Shriram, one of the first investors in
Google. Abrams casts the board as the main cause of Friendster's stumble. Abrams has vowed never to accept another dime in venture capital. "Friendster
ended up with three levels of VPs, CEOs and board members who, although they had
great résumés, were not connected to the social networking concept and didn't
really use Friendster," [an insider commented]. Siegelman, one of Doerr's
partners at Kleiner Perkins, said Abrams was a founder in way over his head,
which is why in April 2004, only a few months after investing in the company,
the board replaced him as CEO. FULL ARTICLE @ IHT.COM
Mark Brooks: I was fortunate enough to be one of Jonathan's group of
friends that he called on to help him with Friendster in 2003. Kicking Jonathan
out, big mistake. He was overwhelmed with it's growth, and he wasn't as smooth
as an Alexa 100 internet CEO might be, but he knew every nuance of Friendster
and why it was successful. Some parallel's can be drawn with the success of
Markus Frind of PlentyofFish. I talk with Markus every few days now, and every
time we talk he's received more calls from VC's wanting to invest. But, he
refuses to accept funding or grow his team beyond a one man band. Some would
argue he should grow it into a company worth hundred of millions. He would
argue...he is...his way. It's the antithesis of the approach Jonathan took.
I'm sure he'd be inspired by it.
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