The announcement this week that UK-grown film rental firm Lovefilm has been sold to Amazon shows that a well run firm using the efficiency and convenience of the internet can still be very successful even in ‘tighter times’.
Nobody would claim that film rental, even via a mail-order system controlled via an internet control panel, was an innovative business. Nor in the light of various competitors doing the same thing was it unique, but what Lovefilm does it does well.
The details of the deal are staying under wraps from all parties but with experts are suggesting a value of around £200 million would be fairly accurate making Lovefilm one of the best internet deals for many, many years. One of the more positive spin-offs from that is that Lovefilm was heavily funded by a number of venture capital firms who are no doubt now counting their profits.
On the back of the same they may also now be looking for ‘the next big thing’ and will certainly be more positive about investing in online projects than they may have been at the start of the year. Creating more potential for those of you out there looking for some venture capital investment.
Have you considered venture capital as a way of giving your company a step-up?