Venture Capital

by Carlo Longino

Filed Under:
porn, vc

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.

Reader Comments (rss)

(Flattened / Threaded)

  1. identicon
    Bornis Henley, Jul 30th, 2007 @ 2:39am

    Just what we need. More internet porn. I'd like to see the sticky mess these VCs get into when that particular bubble bursts....

    reply to this | link to this | view in thread ]

  2. identicon
    Phil MacCrevice, Jul 30th, 2007 @ 4:29am

    I see nothing wrong with this, as long as they invest safely and take care not to blow their wads too quickly. A slow, steady buildup should guarantee maximum payload in the end.

    reply to this | link to this | view in thread ]

  3. identicon
    Sanguine Dream, Jul 30th, 2007 @ 5:23am

    No suprise...

    The desire for cash winning out over morality? In the corporate world this should not surprise anyone.

    And a special LOL at comment #2.

    reply to this | link to this | view in thread ]

  4. identicon
    Dirk Diggler, Jul 30th, 2007 @ 5:59am

    Aggressive thrusting...

    It's about time these namby-pamby venture capitalists showed some genitals and chose to penetrate this engorged market aggressively. If they time their thrusts just right, they're sure to create overflowing returns.

    reply to this | link to this | view in thread ]

  5. identicon
    Witty Nickname, Jul 30th, 2007 @ 6:01am

    My Prediction

    This market will explode rather quickly, then end just as quickly as it started while this may please the Adult Industry the VCs will leave unfullfilled and disappointed.

    Next thing you know the VCs will give birth to another industry.

    reply to this | link to this | view in thread ]

  6. identicon
    Border, Jul 30th, 2007 @ 7:26am

    Too many puns

    That is a lot of puns. I don't think that investing in something like porn is a bad idea. Just because it isn't "Child oriented". Adults, moral or not, should feel free to enjoy porn. It is the same with alcohol or anything else, used responsibly and in a safe environment (husband and wife's bed room) it is erfecetly fine.
    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.

    reply to this | link to this | view in thread ]

  7. identicon
    Casper, Jul 30th, 2007 @ 7:35am


    All I can saw is wow. The are an overwhelming number of puns for this topic, but I think we have plenty posted already.

    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.

    reply to this | link to this | view in thread ]

  8. identicon
    Ravi, Jul 30th, 2007 @ 8:17am too

    Ladies and Gentlemen, fasten your seat belts.
    Get ready for the Porn-ogle 1.0!

    reply to this | link to this | view in thread ]

  9. identicon
    Anonymous Coward, Jul 30th, 2007 @ 6:46pm

    In the end, I don't think that many adult companies will want to give up control to the degree the VCs will want.

    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.

    reply to this | link to this | view in thread ]

  10. identicon
    antonio person, Sep 2nd, 2007 @ 4:00pm


    reply to this | link to this | view in thread ]

  11. identicon
    Curious Investor, Jan 23rd, 2009 @ 11:42am is a good example

    Look at
    They've been around for a little over two years and they seem to be on track. They just launched a site called 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. looks like a winner, I just wish I had the money to invest. Stock market wiped me out.

    reply to this | link to this | view in thread ]

Add Your Comment

Have a Techdirt Account? Sign in now. Want one? Register here
Get Techdirt’s Daily Email
Use markdown for basic formatting. HTML is no longer supported.
  Save me a cookie
Follow Techdirt
Insider Shop - Show Your Support!

Report this ad  |  Hide Techdirt ads
Essential Reading
Techdirt Deals
Report this ad  |  Hide Techdirt ads
Techdirt Insider Chat
Report this ad  |  Hide Techdirt ads
Recent Stories
Report this ad  |  Hide Techdirt ads


Email This

This feature is only available to registered users. Register or sign in to use it.