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VCs Starting To Figure Out There's Money In Online Sex Businesses
from the what-took-you-so-long dept
While venture capital funds have flowed into all sorts of internet-related businesses, they've largely ignored adult-oriented ones, despite the opportunities that market offers. But, the IHT reports, that may be starting to change as VCs get over the stigma of investing in porn companies or other adult-related businesses. While some people say "investment tastes" may be changing, it seems more likely that the VCs' need to find good deals is trumping their moral objections or comfort levels, as they face increasing competition for deals and growing displeasure from their backers about mediocre returns on their investments. On these fronts, sexually oriented businesses are a winner, since relatively few firms want to invest in them, while the market for adult content and other products and services can be a money-spinner. Still, it's early days, and many VCs (or the limited partners who back them) don't want to invest in porn or other sex businesses -- but it looks like that resistance may be lessening as the desire for cash wins out.
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No suprise...
And a special LOL at comment #2.
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Aggressive thrusting...
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My Prediction
Next thing you know the VCs will give birth to another industry.
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Too many puns
The moral majority who turn their nose up at porn are just repressed. I don't see anything wrong with porn at all, business venture or otherwise.
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Wow...
In all seriousness, I don't see a problem with it. Investments are investments. The industry is real, it's lucrative, and it's legal. Besides, if you are looking for a stable business model, this industry has been around for centuries.
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Wow..me too
Get ready for the Porn-ogle 1.0!
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It will take the VCs a long time to understand the unique culture of the industry. These companies usually have many business arrangements with their competitors, to a degree unknown in the mainstream business world; and unlike in mainstream, these deals are often sealed by a handshake. Further, these arrangements start, stop and change rapidly as conditions change.
Not the sort of conditions that make outside investors comfortable.
The mistake many people make is, seeing the big bucks in adult, and not understanding the industry.
"Hey! If they can do it, so can I."
Been there - done that for a few years. It's not true about any business and not true about adult.
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Re:
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AdultVest.com is a good example
They've been around for a little over two years and they seem to be on track. They just launched a site called www.iporn.com in beta and report that they had over 5,000 visits in their first two days even though they haven't made any announements to the public about the site being launched. iPorn.com looks like a winner, I just wish I had the money to invest. Stock market wiped me out.
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