Fred Wilson of Union Square Ventures spoke at the NYC TechCrunch Disrupt. If you are not familiar with Wilson’s social connection, he has invested in just about every flourishing social startup you can formulate in your mind.
At Disrupt, Wilson admitted that he sold some Twitter stock, which doesn’t look too good for Twitter. Particularly since the disclosure occurs before an IPO, Fred Wilson down plays the fact that his firm has previously sold some of its Twitter shares.
Apparently, TechCrunch’s Erick Schonfeld asked Wilson outright and the reply was “I don’t want to say what we’ve done, but I wouldn’t argue with any of the reports out there.”
Wilson went on to say, “We certainly wouldn’t sell stock in a company that the founders haven’t yet sold,” he continues. “We also don’t want to get out ahead of the company’s capital needs. If the company was organizing an opportunity to sell or a sales transaction came around that the company was partial to, we would do that as long as we were aligned with the founders.”
All in all, it will be interesting to see the honest outcome of social networking related stock offerings. Which companies will remain strong? Which companies will not have such a fortunate outcome?
When insiders like Wilson admit in a roundabout way that his company sold some stock of a particular social media firm, we stop and pause to understand. “It’s complicated,” Wilson told Schonfeld. But in the face of selling some of the stock, Wilson says he’s “very confident in Twitter.”