In today’s fast-paced business marketplace, social media applications are overtaking traditional advertising across a wide array of industries. The success of online retailers such as the Gilt Groupe and JetSetter speaks volumes regarding the untapped resources available to Internet start-up companies. Increasing numbers of technology entrepreneurs are taking advantage of the marketing capabilities available through social networking sites such as Facebook and Twitter.

1. NICK BEIM AND
INTERNET START-UP
INVESTING: A GROWING
VENTURE CAPITAL
MARKET (1/2)
By Nick Beim

2. Introduction
 In today’s fast-paced business marketplace,
social media applications are overtaking
traditional advertising across a wide array of
industries. The success of online retailers such
as the Gilt Groupe and JetSetter speaks
volumes regarding the untapped resources
available to Internet start-up companies.
Increasing numbers of technology
entrepreneurs are taking advantage of the
marketing capabilities available through social
networking sites such as Facebook and
Twitter.

3. About Matrix Partners
 In 2001, when Nick Beim joined Matrix Partners, a
leading venture capital firm consistently ranked in the
top five regarding returns to investors, he chose to
focus his energy on investing in and guiding the
growth of Internet and software companies. He
invested in a number of leading web-based
companies including TheLadders.com, a leading
online job market listing service; Care.com, Inc., an
online marketplace for family health care; Gilt
Groupe, the leading private sales company in the
United States; and JetSetter, the leading online luxury
travel agency. Although these companies represent
only a subset of the start-ups Mr. Beim has secured
funding for over the course of his tenure at Matrix
Partners, he learned a great deal about investing in
what some say is yet another “bubble” industry.

4. Conclusion
 Referencing the Silicon Valley revolution that
took place during the middle and late 1990s
before crumbling with disastrous fiscal
ramifications for investors, some of Nick
Beim’s colleagues vocalize strong concern
about the actual valuation of Internet start-ups
with no proven track record of profitability.