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The Next Billion Dollar Retailer

Daniel Hung (September 18th, 2009) Writes:

By now we’ve all heard of Amazon’s near-billion dollar acquisition of Zappos which provided a tremendous return to Zappos’ original investors – Sequoia Capital and Venture Frogs. In fact, they only invested $60 million in the company over seven rounds. And, now, they’re sitting on a billion dollar return. How’s that for IRR?

Obviously, this is the magic of venture capital and outside of investing in a publicly traded venture BDC like Harris and Harris (Ticker: TINY), there’s not much we at home investors can do to get in on the ground floor. But, with up and coming retailers, we can still win! Heck, everyone remembers when Zappos was a low-price retailer instead of just a “customer service focused” retailer. Those were good days weren’t they?

Well, it seems a new trend is hitting the web. “Private” members-only luxury sample sale sites.  These retailers focus on getting limited quantities of

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