Wednesday, September 10, 2008
Sulake Chairman's Igglo Melts
After a 3 year cumulative losing streak of 15.1 mill euro, high-profile real estate startup Igglo (www.igglo.fi), the brainchild of Sulake Chairman Jussi Nurmio is kaput, and its website being folded into
Sanoma Group's online real estate service. But of course, they are not spinning it that way: http://www.sanoma.fi/Content.aspx?d=10349&l=3
For more details see http://www.kauppalehti.fi/5/i/talous/uutiset/etusivu/uutinen.jsp?oid=2008/09/14281
Interestingly, fellow Sulake Board member Johan Brenner, formerly of Benchmark Capital, and now with Balderton was also an investor in Igglo. They only put $12.5 million http://uk.techcrunch.com/2006/11/24/benchmark-invests-125m-in-igglo/
in Igglo so I guess their exposure was minimal. Or was that 12.5 million Euro? http://en.wikipedia.org/wiki/Igglo
In retrospect, however, a 3 year loss in the real world of real estate is no big deal. While Chairing the Board of Sulake, Nurmio has lost real money in the virtual world of HABBO 7 years in a row (2000 - 2007). It remains to be seen whether this year, year 8, will be the year Chairman Nurmio breaks his HABBO losing streak and makes a real profit at the virtual Hotel. Stay tuned ...