Yazam, the Israeli venture capitalist fund that owns the e-business
networking group First Tuesday, has refused an offer of just under
$500,000 put forward by members wanting to take control.
Yazam is said to have paid around £33 million for First Tuesday
last year. First Tuesday’s matchmaking events take place in 111
cities around the world, with entrepreneurs being introduced to
potential investors and service providers. Its revenue is largely
based on a fee charged for each introduction that leads to an
investment. The success fee is charged at 2% of the total
investment amount. Last week, it was reported that Yazam was trying
to sell First Tuesday at around £2 million because the organisation
is said to be costing Yazam around £276,000 per month.
First Tuesday has a small number of full time employees, but has
over 450 people involved in event organisation. Nine
representatives met with Yazam’s management to negotiate the
purchase but yesterday announced that their bid was rejected.
According to the The Industry Standard Europe, a number of
conference organisers have approached Yazam to express interest in
buying the First Tuesday brand, but not the network.
