Peter Relan started YouWeb Incubator in early 2007. Albeit on a small investment raise, over the past six years, it has returned a higher net cash-on-cash multiple and IRR than any disclosed by venture capital funds of the same vintage (which includes funds invested in Twitter, Tumblr, Zynga, OMGPOP, and other large, successful investments: Spark Capital II, Foundry Venture Capital 2007, Union Square Ventures 2008, Avalon Ventures VIII).
YouWeb Incubator incubated dozens of ideas, out of which six successful companies were created in consumer entertainment, PaaS, and ed-tech, including OpenFeint, which GREE acquired for $104 million, and Spaceport, which Facebook acquired. The results for investors have been exceptional: 64.2% net IRR; 5.56x net cash-on-cash multiple (including realized and unrealized gains); and 3.48x realized net cash-on-cash multiple, with several companies still building value.
Studio 9+ was started to scale up YouWeb Incubator’s successful model. The core principles that made YouWeb Incubator successful are similar: