HQ, the favorite live trivia iphone app from some of the same guys who created Vine, wants capital raising money at a good lofty valuation.
The app, which streams live trivia games for real cash prizes two times per day, merely launched in October but has already generated an extraordinary audience. A lot more than 300,000 persons played Tuesday night’s video game.
That quick growth means HQ in addition has garnered some serious investor and media attention. THE BRAND NEW York Times just lately profiled the business, and just about every VC we’ve contacted either met with HQ or revealed interest in a potential offer.
Multiple VC options we spoke with said the business is seeking a good post-money valuation somewhere found in the $80 million to $100 million collection, though that doesn’t necessarily mean it will get it. It’s unclear how much money HQ will raise, though these same options believe it may be somewhere within $15 million and $20 million.
A good spokesperson for HQ declined to comment.
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It’s unclear who’ll ultimately participate in the round, but it appears that of Silicon Valley’s top VC firms have viewed the startup. Lightspeed Venture Companions’ Jeremy Liew, the primary investor in Snapchat, has already been an investor in HQ. The startup has raised around $8 million, regarding to a resource, and previously tried launching additional apps that never became popular.
One of the hangups for traders is that they can not figure out what HQ Trivia is. Is it a media company? Is it a fad? Could Facebook quickly replicate the trivia video game model?
Investors may also need to get some management and media training for HQ CEO Rus Yusupov, following an embarrassing story found in The Daily Beast where Yusupov flipped from a good reporter for trying to profile the show’s sponsor, Scott Rogowsky. Yusupov later apologized, but it wasn’t a great look for a firm out trying to improve.
Reminder: The last time Yusupov and HQ co-founder Colin Kroll experienced a good hot app, they didn’t raise a big circular – they just distributed the business before it experienced formally launched. In 2012, Yusupov, Kroll and co-founder Dom Hofmann distributed Vine to Twitter for a reported $30 million.
It certainly is possible Yusupov and Kroll could do it again history by advertising HQ to Facebook or perhaps Snapchat. But it is also simple to imagine a situation where in fact the two men
and don’t desire to make the same mistake with HQ.
-By Kurt Wagner, Recode.net.
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