Posted by John Hultar on Apr 10, 2013

Teenage Nick D’Aloisio Paid $30 Million From Yahoo

Teenage Nick D'Aloisio Paid $30 Million From Yahoo

Our hats are off to “Rich Nick!”
Yep, I’m referring to Nick D’Aloisio. In case you missed it, Nick is the 17 –year-old developer who has won massive publicity after selling his mobile media app to for $30 million!
But Nick’s next million dollar purchase isn’t what everybody wants to know.  Or at least it’s not what Silicon Valley tech experts care about.  They all want to know if, the buyer of Nick’s new app called “Summly,” will ever be able to maximize it’s functionality legally.
You see, Yahoo bought his app with the grand intention of scraping news stories, altering them, and finally…uploading them.  But, copyright law is currently being leveraged by The Associated Press.  Just last week, AP sued a Norway-based news aggregator (Meltwater), and won.  Apparently, Meltwater committed the crime of uploading snippets of news stories to their clients without paying AP for it’s licensing fee.
Oh the shame!
But don’t let this little dust up scare you away from creating your own app.  The money being paid out to developers is no in question.  In fact, in the first quarter of 2013, huge companies like Yahoo and Google are still aggressively buying up loads of technology from young entrepreneurs of all ages.  This allows these entrepreneurs to have great confidence while playing an important role in the fast growing world of venture-capitalism.
The “Big 4″ leading social media companies have been mostly responsible for the purchases of these innovative technologies created by teens across the world.  Google and Facebook alone have made 16 acquisitions each in the last 7 months.  Twitter and Groupon are not so far behind with 10 for Twitter, and 12 acquisitions for Groupon.  Cisco, Oracle, Microsoft and Dell also were responsible for many of these deals.  The price on most of the deals varied, usually within the $30 million range.
 The usual route for companies that look to make serious profit was to incorporate private investors to sponsor the building process until they made their investments back and could sell shares to the public.  This process usually takes 3-5 years.
One notable side effect of all of the acquisitions is the fact that small investors will have fewer opportunities to be a part of the initial public offerings or early growth.   A few mutual funds are made up of start-ups, these funds include: Firsthand Technology Value Fund, a closed-end fund that invests in pre-public technology and many clean energy ventures.  GSV Capital is a public company that invests in start-ups.According to U.S. securities regulations, open end mutual funds which is the favorite amongst investors, must hold back on their private company buys to 15%.If your looking to steal a page from 17 year old D’Aloisio with dreams of becoming an overnight millionaire, maybe you want to know a little bit more about D’Aloisio.  He started programming his own apps when he was just 12, since then he has launched 6 successful ones.  “Passionate about Algorithms, Artificial Intelligence, Design, Product, Mobile Applications, Natural Language Processing, Maths, Typography, curiosity and learning.”  As seen on Linkedin, this young man has very advanced ‘Skills and Interests.”Even Apple awarded one of Nick’s applications “Best Apps of 2013.”  Not bad for a teenager.