Today’s top stories: Net profit at media group DuMont fell sharply in 2009; Accel Partners put 37 million euros into France’s number 2 shopping club; Jochen Krisch predicts a gloomy set of exit options for Brands4Friends; and Cologne agency Vancado is celebrating its birthday by giving away a professional website to one lucky entrepreneur.
DuMont’s profit slumps 96%
The Cologne-based media group DuMont recorded a decline in profit of 96 percent in 2009 after a drop off in advertising revenues. The company’s annual report shows that in 2008 net profit was hovering just under €13m, while the following year it fell to slightly more than €460,000. In response, „strict cost management“ measures have been brought in for all divisions.
Accel invests €37m in ShowroomPrivé
The international investment group Accel Partners has backed France’s ShowroomPrivé online shopping club with a €37m investment, as reported by Exciting Commerce (German). It’s the second largest fashion e-commerce site of its kind in France. By European standards it might be seen as a declaration of war on the German equivalent Brands4Friends.
Poor outlook for Brands4Friends
„What remains now for Brands4Friends in terms of exit options?“, asks Jochen Krisch at Exciting Commerce (in German). The e-commerce expert sees the former flagship international fashion startup looking „lonely on a limb“, particularly after the news of Accel’s massive investment in ShowroomPrivé. Kirsch argues that from an investor point of view there is far more attractive investments and even if Brands4Friends manages to find a strategic merger, then it would probably only be as the junior partner.
One for the diary: €10,000 website up for grabs
The Cologne-based communications agency Vancado is celebrating its anniversary by offering a prize for successful young entrepreneurs. Reflecting on its own beginnings as a startup, when it was „grateful for any kind of support“, Vancado is now keen to do a good turn for a new founder in need (and generate some publicity into the bargain). Cologne-based founders can apply at DubistderBoss.de for a chance to win a professional website to the value of €10,000. The deadline for applications is 15 October.