VCs Regret Funding Spyware Companies

from the like-you-didn't-see-that-one-coming... dept

In the past, we’ve wondered why VCs would possibly agree to fund a spyware company — but for a while they were quite popular, even leading to bizarre attempts to defend the practice. However, with the anti-spyware world now being even hotter, it looks like many VC firms now regret the decision to fund spyware companies, recognizing that there’s no good exit strategy. Even the so-called “leaders” in the space have discovered that an IPO is nearly impossible. Even as these companies seek to reinvent themselves, it appears that their reputation is holding them back. What’s amazing is that the VCs who made this investment should have easily been able to see this coming.

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