Two days after launch, start-up sells for $176M
Just take a look at Instagram. Famously, the photo app had 13 employees and only 15 months under its belt back in April. Then, it sold for $1 billion.
But perhaps now we have a new poster child for speedy start-up riches: just two days after launching, a new company has sold for $176 million.
Contrail Systems isn’t a household name, and indeed it may never be. You’re likely never downloading the Contrail app on your smartphone.
*Bing: Start-ups that flopped
But Contrail will fill a very real need. The company makes networking software, which will keep companies from having to buy much more complicated, much more expensive, networking hardware.
Though it’s important to note Contrail doesn’t have much just yet. The company has been in operations for a while, but in stealth mode.
Contrail had attracted $10 million in venture capital funding, but it has no products yet, and won’t even have any to market until next year, according to Network World.
But Contrail has an idea, a plan to execute it, and that’s a hot commodity these days.
Juniper Networks, a big competitor to networking giants like Cisco and the former home to some of Contrail’s workers, is the name that coughed up $176 million for Contrail Systems yesterday, just two days after its Tuesday launch.
By Jason Buckland, MSN Money