Investor makes its first-ever investment in a public company.
Venture capital firm Union Square Ventures (USV) has made a “substantial investment” in publicly traded Tucows, the company revealed today. This marks USV’s first investment in a publicly traded company.
The firm said that it is investing not only because it believes Tucows has built a great business, but also because Tucows is a staunch supporter of an open internet.
While big internet service providers are “exploiting their natural monopolies…underinvesting in their outdated networks, raising prices and using the excess profits to buy back their stock, and [buying] their way into global entertainment businesses, pleasing shareholders but doing nothing for the communities they serve,” Tucows is doing the exact opposite, managing partner Brad Burnham writes.
Tucows is bringing fast internet to communities but limiting itself to providing “dumb pipe,” as Tucows CEO Elliot Noss said at NamesCon earlier this month. This means that the company provides the internet connection, not limiting what people do with it or offering discounts for using its own add-on entertainment services.
It’s worth reading Burnham’s blog post in its entirety.
USV has not filed a form 13D with the SEC, so its investment is under 5% of the company.