Ah, remember the good old days, by which I mean November 2010, less than two years ago, when there was no bubble and all those crazy valuations in the secondary market made perfect sense because, as John Doerr pointed out here, Zynga was “the most profitable, the fastest growing and has the happiest customers” of any company KPCB had ever invested in. Yay! Back then Zynga was valued at $6 billion and it seemed like the sky was the limit.
Cut to today: Zynga is valued at $2.5 billion. The stock is down 70 percent from the IPO. When you read about Zynga it’s stuff like this saying they should sell if they can find a buyer. And when you read about John Doerr, it’s stuff like this, talking about the “end of an era,” and how these days KPCB looks like a clown running across a minefield.
Oh well. Just because Zynga is struggling doesn’t mean the whole investment thesis was wrong. I mean there’s still Groupon and Facebook. Oh wait.