In 2007, Jay Virdy left AOL to start Summize. The company crawled online reviews all over the web and summarized them for movies, books and movies.
One year later, Twitter bought Summize for about $US15 million in a cash and stock deal. It was Twitter’s first acquisition. Summize had raised less than $US1 million from two investors, Passport Capital and Betaworks.
That acquisition amount nothing to sneeze at, especially with such little outside capital raised and only five employees. But the Summize team is in far better shape now.
Bloomberg’s sources say Summize’s investors and co-founders were given about 10% of Twitter’s stock then, which equaled $US10 million.
At the company’s current private-market valuation, the stock Summize was given is now worth hundreds of millions of dollars.
“When I told people I was selling the company to Twitter, they all said, ‘What the hell is Twitter?'” Virdy told Bloomberg in an interview. “I said, ‘Don’t worry, it’s going to be big.'”
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