Tuesday, August 23, 2011
eHarmony Approaches Redemption Deadline, Says Report
Los Angeles-based matchmaking site eHarmony is approaching a redemption deadline from its last venture funding round, according to a report today from Reuters. According to the report, eHarmony has a November 5th deadline, after which its venture backers--including Technology Crossover Ventures and Sequoia Capital--will be able to exercise a clause which would force eHarmony to buy back their preferred shares, matching the original investment by those firms in the company or an agreed-upon price. It's unlikely that the venture firms would do so, however, given the current valuation of eHarmony, which has been rumored in recent months to be seeking an IPO. However, it is apparently a rare event in the venture capital business to run into a redemption rights deadline, according to the report.