Taomee IPO Shows Chinese Kids Are A Goldmine

• Posted by bbishop
• on June 9th, 2011

I think I am going to drink heavily tonight. I lost a lot of money, my own and others’, trying to build a virtual world for Chinese kids. The company was called Red Mushroom, the product BaoBao BengBeng. We had the first online kids world in China, but we couldn’t make a business out of it. I am still pissed about it (could you tell?)

Taomee succeeded where we failed, and its shares start trading today under the ticker $TAOM. Taomee priced its IPO last night at $9 a share, at the bottom of the range.

Our friends at iChinastock have prepared a primer on the firm:

Taomee is a very interesting company, founded by former Tencent employees and funded by Qiming and Jason Zeng, a Tencent co-founder. The company’s biggest threat is Tencent, as Pony Ma apparently is personally trying to crush it.

Taomee is in a good market segment and has a terrific team. I am hoping for a nice drop in Taomee shares. Maybe I can trade it and get back some of the money lost trying to compete with them…

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