Moonpig founders get their noses in the trough

Have you ever used Moonpig? Personally I haven’t but then as regular readers of my blog will already know I don’t tend to catch on to trendy ideas until around the fourth or fifth wave!

However, Index Ventures, the canny investor which backed Skype and Love Film, is being linked via one of its portfolio companies, Photobox, with the acquisition of Moonpig in a deal that will value the company at around £125m. If the deal is finalised then it will provide an exit for early investors and a nice financial windfall for the original founder and chairman who backed the idea.

For those of you unfamiliar with Moonpig, it’s an online greetings cards business founded in the height of the dotcom boom. It enables users to personalise greetings cards with photographs and messages online and then have the personalised cards sent to recipients anywhere in the world. The potential tie-in with Photobox would be a logical one, given that Photobox allows for the personalisation of more or less anything using your own photographs, and according to its website “is Europe’s number one online community for photo printing, sharing and personal publishing with over 8.5 million users”.

I guess what’s refreshing about this deal is that it’s a case of a company set up at the height of the dotcom boom. The company had a sound business idea, received other funding rounds over the last few years and those funders have remained present for the longer term.

What I would like to know is will those who have backed the company be receiving a Moonpig personalised thank you card on exit?

Filed under: online, Investors