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Commercial Drone Platform Company Gets $10.7 Million From Andreessen Horowitz and Google Ventures

Kara Swisher — Wed, 15 May 2013 11:30:39 +0000

Airware, a startup that is creating a software platform for commercial drones, said it had raised $10.7 million in a Series A funding round led by Andreessen Horowitz. Google Ventures also participated. As part of the deal, Andreessen Horowitz partner Chris Dixon will join Airware’s board.

The Newport Beach, Calif., company said it would use the money to expand staff for its universal development platform as the market for non-military drones expands.

Airware founder and CEO Jonathan Downey said that uses of drones will be increasing for a wide range of purposes, from checking infrastructure to monitoring mining operations to preventing poaching.

In an interview, Downey said that he expects to compete with a range of ex-military efforts, but that the most successful companies will be those that provide a platform to allow for the widest range of innovations.

“This is going to be about a lot more than we know or can guess,” he said. “The industry is at its very beginnings.”

Dixon agrees. “Hardware is the new software,” he said about the investment in Airware, which he said he discovered after attending conferences about the fast-moving drones business, noting that the overall field of robotics has “overpromised and underdelivered.”

Airware came out of both the Lemnos Labs and Y Combinator incubators and had raised seed financing from First Round Capital, Firelake Capital, RRE Ventures, Shasta Ventures, Promus Ventures and several Y Combinator partners.

Loose Lips: Yahoo M&A Head Told Employees Company Looking at Two "Significant" and a Half-Dozen Small Buys

Kara Swisher — Thu, 07 Mar 2013 20:33:13 +0000

Lost in the sauce of the national work-from-home debate of last week that engulfed all things Yahoo, was a fascinating tidbit that several employees passed on to me from a recent Friday FYI meeting at its Silicon Valley HQ.

At the gathering, CEO Marissa Mayer talked briefly about the new telecommuting arrangements for some staffers, including the controversial new work-from-home memo that HR head Jackie Reses had issued that day.

But when Reses — who also wears another corporate hat as head of M&A at Yahoo — spoke she mentioned to the crowd that Yahoo was working on two “significant” acquisitions and about six smaller talent “acqhires.”

“It was kind of odd to telegraph it in such a big forum,” said one employee of Reses’ comments at the meeting in late February.

The revelation was unusual, to be sure, but perhaps not a surprise, given the recent run-up in Yahoo stock, its healthy cash position and, most of all, its need to add meaningful growth to the current efforts at turnaround.

And while some of its recent buys have been interesting and focused on improving its moribund mobile efforts, they have also been very small. And, as one high-ranking exec there told me, they “don’t move the needle in the way we need to in bringing in senior talent or loads of users or serious revenue.”

Indeed, while Yahoo shares have benefited greatly from the impressive performance by Alibaba Group in China, which is clearly on a roll, many think that showing actual improvement in its core business will be critical in the months ahead.

While making changes to Yahoo’s homepage and email, as well as cutting products, has been done, it is not yet clear what the impact is; the changes are aimed more at holding on to consumers rather than exciting them with new offerings.

Yahoo could also create its own new products to wow the masses, but that has been harder for it over the years. (Remember Livestand? Yeah, not so much.) In any case, an innovation infusion of such a large magnitude will take some time, given Mayer has to get the right people into place to do so.

Thus, a big purchase of an exciting new company with prominent leadership seems more likely than not and sooner than later. While Mayer has not articulated her vision for the new Yahoo in anything more than general ways, what she buys will say a lot.

Thus, sources said that Yahoo has been looking at a range of such acquisitions, in a number of categories such as advertising tech, mobile monetization and, of course, consumer “daily delight,” which is a phrase Mayer has used a lot.

It would be bold if Mayer went all out and made a mega-buy that would shake up the competitive landscape. My first choice for that is Pinterest, the scrapbooking phenom that was just valued at $2.5 billion in a new funding round. Mayer has also shown a lot of interest in blogging superstar Tumblr, while at both Google and Yahoo, as well as Foursquare, the well-known location app. Of course, there is also the troubled gaming giant, Zynga.

All are very pricey and would face rival interest, but such a move would be akin to Facebook’s billion-dollar blockbuster purchase of Instagram. Many now think that was prescient and cheap, given how important mobile photos are to the current digital ecosystem.

The list of possible big deals goes on: Hulu (which needs a tasty content element to make sense) as a video play; Millennial Media or Jumptap for mobile advertising; Quora for social answers; Flipboard for social media consumption; Rubicon or PubMatic, for ad targeting; and many more.

But all of those begin at the billion-dollar or more range and I have checked with a number of these and come up peanuts. Still, there are a whole lot of choices for Mayer and Yahoo in the $200 million to $500 million price range.

Here, Yahoo has the financial strength to make at least two of these significant purchases that Reses mentioned, as well as developing a much better reputation for Yahoo to keep real talent interested.

As one prominent startup exec, who had told me he never would consider selling to Yahoo in the past, said recently: “They are no longer complete losers, although Facebook and Google and Apple and Amazon are still cooler.”

Hey, it’s a compliment, even if it’s a back-handed one, so it will be interesting to see who finds Yahoo cool enough.

Square COO Keith Rabois Departs Company

Kara Swisher — Fri, 25 Jan 2013 06:11:22 +0000

In a major exec departure, Square COO Keith Rabois will be leaving the San Francisco payments company.

Square gave no other information about the sudden management change, but sources said disagreements between Rabois and CEO and founder Jack Dorsey were part of the reason for his exit.

It’s not clear if there were more serious issues between them, or whether the parting was related to a specific business problem. But the departure of the No. 2 exec is significant, so definitely more to come on what happened.

In a statement about the move, Rabois only said:

It is amazing what Square has accomplished since August of 2010. When I joined, there were 17 engineers all reporting flatly to Jack. The local coffee shop served as our interview room. Leading our amazing crew has been the most rewarding professional journey of my life. I am forever grateful to Jack, for his confidence in me and to each and every member of the team for allowing me to learn from them.

But every day matters. And it is better at this point for me to be doing something different every day.

As a result, I’ve decided to resign from Square. I am very excited about what lies ahead for the company. Square could not be better poised for greatness.

I will have more to share about my next opportunity soon.

Said Square’s Dorsey:

Today I accepted Keith’s resignation from Square. When he joined, we had fewer than 30 employees and under 1000 active merchants. Today, over 3 million individuals and businesses are able to accept credit cards with Square, processing over $10 billion annually. We couldn’t have done it without him and we wish him well in his next opportunity.

Square CFO Sarah Friar will become acting COO, Square said. It’s an unusual move to put an exec without a lot of deep operational experience in the second-most-important slot at Square, though the former Goldman Sachs analyst and Salesforce.com finance exec is clearly familiar with the heart of the company’s business.

The change in top management comes at a time of fast growth for the three-year-old Square, which completed a $200 million funding round in the fall that valued the company at $3.2 billion. At the time, the company said it had more than 400 employees and would grow by 100 more by year’s end.

Square is best known for allowing a range of small businesses, such as taxicab drivers, to accept credit and debit cards using their mobile phones. But it has also branched out into other mobile payments areas.

Besides his stint at Square, Rabois is a well-known angel investor in Silicon Valley, and serves on several boards, including Yelp’s. He has worked at many startups, too, including PayPal (acquired by eBay) and Slide (acquired by Google).

OpenX Raises $22.5 Million in Round Led by Samsung Venture Unit

Kara Swisher — Thu, 17 Jan 2013 12:00:22 +0000

OpenX Software said it had raised $22.5 million in a Series E funding round, with Samsung Venture Investment Corporation as lead investor.

All told, the Los Angeles-based online advertising technology company has raised $70 million. Along with Samsung, existing investors — Accel Partners, Index
Ventures, SAP Ventures, Mitsui & Co. Global Investment, Inc. and Presidio Ventures — were also part of the new round.

“We have been building the company to continue to grow,” said OpenX CEO Tim Cadogan, who noted that the company had doubled its size and revenue in the last year. The company now has 260 employees.

He said that OpenX had a partnership with Samsung that it evolved into a financial arrangement to bring the Korean electronics giant “a little closer to the company.”

Cadogan said the new funding would be used for acquisitions and other expansion, especially into mobile, as it competes with rivals such as search giant Google.

“We are building a truly viable revenue program that goes across screens,” he said, pointing to two recent strategic acquisitions — LiftDNA and JumpTime.

Samsung’s Brannon Lacey said the company invested in OpenX because it was pioneering in the space. “As an investor, it is a fragmented market and there will be consolidation,” he said. “And OpenX is best positioned for that.”

OpenX said that it had grown its transactions from one trillion to four trillion from 2011 to 2012.

Anne Wojcicki of 23andMe on One Million-DNA March and More (Video)

Kara Swisher — Mon, 14 Jan 2013 11:00:43 +0000

Last week, I paid a visit to the Mountain View, Calif., offices of personal genomics company 23andMe, which just raised more than $50 million in a new funding round, to add to the $68 million it has garnered since it was founded in 2006.

The new financing includes Russian investor Yuri Milner, as well as existing ones including Sergey Brin of Google, New Enterprise Associates, Google Ventures and MPM Capital.

While there, I interviewed CEO Anne Wojcicki about what she plans to do with all that money, including the company’s effort to get one million people to get detailed information on their DNA by cutting the price of its tests to $99.

23andMe’s Personal Genome service now offers 244 reports on health and personal traits, as well as genealogy and ancestry information that people can share socially. That’s down from the original $999 price that provided only 14 reports.

Wojcicki said she hopes that will spur more interest about from whence we came, and also how important it is to know your own genetics, to be aware of, prepare for and also prevent diseases of all kinds.

(On a personal note, that is exactly what happened to me after Wojcicki contacted me in China, after I had a serious stroke, to give me critical info from my own 23andme profile about a blood anomoly I had that was key to my care.)

Here’s the video of my interview:

[ See post to watch video ]

Cloud Media Start-Up Plizy Raises $4 Million From Atlas

Kara Swisher — Wed, 12 Dec 2012 15:18:20 +0000

Plizy, a San Francisco-based cloud media start-up, said it has raised $4 million in a Series A funding from Atlas Venture. The company, which recently launched a new version of its product on the Web and for Apple iPad, allows users to search, organize, watch and share online content, such as movies and television shows. Plizy, which had previously raised $1.2 million in an angel round, will use the money to expand its content offerings and build out to other platforms. In addition to the funding, Plizy said that PayPal President David Marcus will join Plizy’s board, along with Atlas’ Fred Destin.

Social Media Marketing Firm HubSpot Adds $35 Million in Funding

Kara Swisher — Mon, 05 Nov 2012 05:00:47 +0000

HubSpot, which helps users with marketing via social media, has completed a new funding round of $35 million. The Cambridge, Mass., software company had previously raised about $65 million. The latest investment included previous investors Altimeter Capital and Cross Creek Capital, as well as, reportedly, Fidelity Investments. Earlier fundings have included General Catalyst Partners, Matrix Partners, Scale Venture Partners, Sequoia Capital, Google Ventures, Salesforce.com and Charles River Ventures. The new money will be used for international growth and acquisitions.

CrowdSource Raises $12.5 Million for Enterprise Tasks

Kara Swisher — Mon, 22 Oct 2012 14:39:11 +0000

CrowdSource, which uses hundreds of thousands of workers to manage labor-intensive enterprise tasks, raised $12.5 million in a Series A round. The funding was led by Highland Capital Partners. The start-up, which focuses on content creation and structuring big data, said it will use the investment to expand offerings, add more workers and increase sales and marketing.

Criteo Nabs $40 Million in Funding at $800 Million Valuation

Kara Swisher — Tue, 25 Sep 2012 23:00:00 +0000

Criteo, the performance display advertising company, just nabbed about $40 million in additional venture funding.

The Series D round, led by SoftBank Capital, gives the Paris-based company an $800 million valuation, according to sources, although Criteo declined to comment on the figure.

Previously, Criteo had raised just over $23 million from investors that include Bessemer Venture Partners and Index Ventures.

In an interview, CEO J.B. Rudelle said the money would be used for growing its footprint in the U.S., as well as Japan and Asia, more quickly.

The company has seen quick growth here and the market has already become profitable. But Rudelle said, “This funding is obviously a big step. We are going to use it to accelerate our efforts in key markets.”

Criteo now operates in 32 countries, he said, and it hopes to extend its global footprint as more companies are looking for better performance from online advertising.

“The need for performance to drive display advertising is enormous,” said Criteo president Greg Coleman, referring to “personalized retargeting,” which delivers highly targeted ads to consumers.

Ad tech such as Criteo has become a hot arena of late with larger companies such as Yahoo and Facebook interested in acquiring assets in the space.

For now, at least, it looks like Criteo filled its kitty to stay independent.

Here’s the official press release from Criteo:

Criteo completes €30 million Series D led by SoftBank Capital
Syndicate of investors includes Yahoo! JAPAN, SAP Ventures, Adams Street and Bessemer

NEW YORK — 26 SEPTEMBER 2012 – Criteo, the global leader in performance display advertising, today announced a €30 million round of financing led by SoftBank Capital to support the company’s hyper-growth trajectory.

Profitable since 2009, Criteo has continuously delivered growth, exceeding all forecasts since the company’s founding. The company now serves more than 3,000 advertisers worldwide, with the US being the number one revenue generating market. This new investment will help Criteo to continue reinventing the online display advertising market, with a goal of making it as efficient as search marketing.

JB Rudelle, CEO and Co-Founder of Criteo said: “In a period of high-growth for Criteo, this new financing enables us to invest substantially in innovation, technology and people. In addition, we are very excited to leverage the knowhow and footprint of SoftBank and Yahoo! JAPAN for our expansion in Asia, a very strategic region for us. Overall, the fact that such a sophisticated syndicate of investors has decided to join us is a powerful validation of our unique model.”

Matt Krna, Principal at SoftBank Capital added: “We are delighted to partner with Criteo and help the company extend its leadership in the cost-per-click performance display advertising sector, particularly in Japan and throughout Asia. In speaking with Criteo’s clients and partners, it became clear to us that the company’s analytical, performance-based model offers clear advantages to the entire online ad ecosystem, including consumers.” Mr. Krna will join Criteo’s board as an observer.

Recently Criteo announced an exclusive partnership with Yahoo! JAPAN — in terms of cost-per-click personalized display advertising, it is the first time that a third party technology company has had access to its inventory. To support its growth, Criteo has also recently invested in a state-of-the-art 100,000 square foot R&D centre in Paris, France.

Jeff Ma Talks About TenXer Raising $3 Million More to Help You Judge Yourself (Video)

Kara Swisher — Tue, 28 Aug 2012 17:00:15 +0000

On-the-job personal productivity start-up tenXer has raised $3 million in a Series B round, which it said it will use to accelerate growth outside its software industry market.

The San Francisco company, which was founded by longtime entrepreneur Jeff Ma, makes tools to allow a user or perhaps a company, track performance and progress using a number of different metrics. The presumable goal is to use social and gaming elements, along with this activity data, to help you do your job 10 times better.

Get it with the tenXer name now?

The new funding is led by True Ventures, and its partner, Puneet Agarwal, will join tenXer’s board of directors.

Radar Partners and Khosla Ventures, as well as angel investors, participated in the new round, for what the company describes as a “human capital management platform.”

Currently aimed at tracking the work of software engineers, tenXer integrates current tools such as GitHub, Pivotal Tracker and Jira.

Here’s a video interview with Ma — who gained fame for his gambling prowess as part of the MIT blackjack team, and also was one of the co-founders of Citizen Sports, which was bought by Yahoo in 2010 — about the new round, and also about where tenXer is headed next:

[ See post to watch video ]

Fenwick VC Survey: Q2 Funding Valuations Shoot the Moon

Kara Swisher — Thu, 23 Aug 2012 14:00:24 +0000

According to Fenwick & West’s latest Silicon Valley Venture Capital Survey, fundings in the second quarter of this year showed the highest valuation increases in more than five years.

Looking at 115 financings of tech and life sciences companies, in Q2 the well-known tech-focused law firm saw “up” rounds accounting for 74 percent, while “down” ones were 11 percent. Flat rounds were 15 percent.

That was a marked change from the previous quarter, which was 65 percent up, 22 percent down and 13 percent flat.

More importantly, it was the 12th consecutive quarter in which ups were ahead of downs.

Perhaps even more importantly, average funding prices for the quarter rose 99 percent, which is nearly double the 52 percent increase in Q1. Two big-ticket financings upped the Q2 number, which would have been 70 percent if they were removed.

Still, it is the highest amount increase since Fenwick began compiling the numbers in 2004.

Internet/digital media and software was the biggest beneficiary of the rise. Hardware was next, but life sciences and cleantech did not keep pace.

Fenwick said that VC fundraising is still lower than 2007 levels, noting that “venture capital continues to be a tale of two cities, where the Internet/digital media and software industries dominate other industries, and venture capitalists with proven track records can raise large funds but fundraising for others is much more problematic.”

The report, co-authored by Fenwick partners Barry J. Kramer and Michael J. Patrick, noted that Series B rounds were strong in the quarter, although the percentage of them has declined for three straight quarters, “perhaps indicating that companies are having difficulty securing Series B funding, but those that do are being rewarded with substantial valuation increases.”

Here’s the report for your personal perusal:

Q212_VC_Terms_Survey_Report _Spacing_

Dear Internet IPO Investors: So Very Sorry! (But Not Really, After You See Our Next Fundings.) Signed, Silicon Valley

Kara Swisher — Thu, 26 Jul 2012 00:11:55 +0000

If you invested some of your money in the series of big, splashy IPOs that Silicon Valley has largely funded and churned out over the last year, you might be a little irritated.

Even irked. Possibly quite out of sorts.

And you would have good reason if you looked at the performance of many of the freshmen companies that have come out since early last summer.

That’s because of all of them, only three — business network LinkedIn, enterprise software start-up Jive and the recently debuted travel site Kayak — are your friends, up 9.8 percent since its May 27, 2011, debut; 26 percent since a December 15, 2011, opening; and about six percent since an IPO last week, respectively. In addition, video services company Brightcove is up a small 2.7 percent since its February 21, 2012, IPO.

Not so much for the other four, which have been much rockier, in order of their public offerings: music streaming site Pandora, down 29.6 percent since its June 24, 2011, IPO; Groupon, down 72.3 percent since the daily deals site’s November 7, 2011, IPO; Zynga, down 46.6 percent since its December 19, 2011, IPO; and Facebook, down almost 23 percent since its May 18, 2012, IPO.

But the stock weakness — as social networking giant Facebook preps to release its first earnings report as a public company tomorrow, after Zynga’s disastrous Q2 results from its online gaming business earlier today — does not seem to have stopped the frothy valuations for private start-ups from being even more foamy.

Along with a $2.6 billion new mega venture fund from New Enterprise Associates, comes a Wall Street Journal report that online storage company Box is raising a new round at a $1.2 billion valuation and hopes to IPO at a $2 billion to $3 billion one next year; and online payments start-up Square is looking at a $3.25 billion-valued round, according to the New York Times, which is 13.5 times higher than just two years ago.

Caveat: While there have been some good returns to private investors in the M&A space of late, such as social enterprise network Yammer’s recent $1.2 billion sale to Microsoft, not everyone is going to get such deals.

And definitely not public investors for whom hope either springs eternal — or just springs a leak.

Exclusive: Japan's Rakuten Wins the Heart of Pinterest in $100M Funding Race With $1.5B Valuation

Liz Gannes and Kara Swisher — Thu, 17 May 2012 03:18:12 +0000

Rakuten, which runs the largest e-commerce site in Japan, is expected to be the lead investor in the much-contested next round of funding for Silicon Valley’s hottest start-up, Pinterest.

The funding is expected to be announced tomorrow morning.

(Update: Rakuten confirmed the deal in a press release, which is below.)

The Tokyo-based Internet giant will invest upwards of $50 million in a $100 million round that values the social bookmarking phenom at $1.5 billion.

There might be other individual investors in the new round, but those were still to be determined tonight by Pinterest co-founder and CEO Ben Silbermann.

(Correction: We previously reported it was a $120 million round, but sources said it is $100 million. It’s possible more could still be added, as we heard conflicting accounts.)

While the latest round of funding for Pinterest has been the most hotly sought of late in tech circles, one source said Silbermann was looking for a global strategic investor and had talked to several large Asian companies.

Said one source on why he settled on Rakuten: “He just really liked them.”

The current investors in Pinterest, which is a social collection site where users can “pin” their interests via a handsome graphical interface, include Andreessen Horowitz, Bessemer Venture Partners and FirstMark Capital, as well as several well-known angel investors. That group had valued the company at $200 million last October, and are joining the new round pro rata.

Founded in 2008, Pinterest had previously raised a little under $40 million in funding.

It’s interesting that the latest round was not led by an institutional investor, since everyone and their mother wanted in on the deal. Sources said no new venture capital firms were included in the round and that is the way Pinterest’s quirky leadership wanted it.

Sources said Silbermann has been concerned with Pinterest’s global growth as well as fending off international clones, and was looking for a partner with which the start-up could work closely.

“Ben did not want any more VCs,” said one source. “He wanted an investor that moved the company forward.”

Rakuten will presumably help advise Pinterest on turning their pretty pictures into purchases, as commerce is already starting to emerge naturally on the site.

It’s a good choice of partners in that regard. Rakuten is one of the largest e-commerce companies in the world, with a flagship site Rakuten Ichiba. It was founded in 1997 and had revenues of $4.7 billion in 2011. Its CEO is Hiroshi Mikitani, whose nickname is Mickey.

One the richest men in Japan, Mikitani is one of the best known entrepreneurs there; he has been described as “Richard Branson meets Jeff Bezos.”

Earlier today, The Next Web reported that the funding was coming this week and said the company was looking at international partners, but it did not name Rakuten.

Rakuten Leads Investment In Pinterest

Global social commerce pioneer takes stake in online sharing service

TOKYO, May 17, 2012 – Rakuten, one of the world’s largest online marketplaces, today announced that it is leading a $100M investment in Pinterest, with participation from existing investors Andreessen Horowitz, Bessemer Venture Partners, and FirstMark Capital, as well as a number of angel investors.

The funding will allow Pinterest to continue improving its service and expanding its community globally. The investment also marks the start of a strategic partnership between Rakuten and Pinterest to help expand in Japan and into Rakuten’s 17 other global markets.

Hiroshi Mikitani, CEO of Rakuten said: “While some may see e-commerce as a straightforward vending machine-like experience, we believe it is a living process where both retailers and consumers can communicate, discover, and curate to make the experience more entertaining. We see tremendous synergies between Pinterest’s vision and Rakuten’s model for e-commerce. Rakuten looks forward to introducing Pinterest to the Japanese market as well as other markets around the world.”

Ben Silbermann, co-founder and CEO of Pinterest, said: “Our goal is to help people discover things they love, by connecting people through their shared interests. Bringing Rakuten on board gives us an amazing opportunity to move a step closer to this goal.”

Rakuten ranks among the top 10 internet companies in the world. Among its numerous online properties, its flagship B2B2C (business-to-business-to-consumer) model e-commerce site Rakuten Ichiba is the largest e-commerce site in Japan and among the world’s largest by sales. Its global presence has been reinforced through the acquisitions of leading online marketplaces Buy.com (US), Priceminister (France), Ikeda (now Rakuten Brasil), Tradoria (now Rakuten Deutschland) and Play.com (UK), and investments in Ozon.ru and AHA Life. Whereas other marketplaces may compete directly with sellers, Rakuten’s model seeks to empower merchants to deliver Omotenashi, a Japanese high service mindset, which helps sellers create lasting relationships with customers.

And here’s a video of Kara pontificating away on the subject for WSJ.com’s “Digits” show:

Flipboard CEO McCue Likely to Step Down From Twitter Board Over Potential Future Conflicts (Or Closer Cooperation)

Kara Swisher — Mon, 07 May 2012 20:37:24 +0000

According to sources close to the situation, Flipboard co-founder and CEO Mike McCue has approached Twitter CEO Dick Costolo and co-founder Jack Dorsey about moving off the board of Twitter.

It is not clear when McCue — who became a director of the San Francisco social communications company in late 2010 — will step down, but it could come soon.

The reason, sources said, is McCue’s growing feeling that the companies are on a product collision course, with a possible troubled or perhaps more attractive result.

In other words, Flipboard will either face increasing rivalry from Twitter or will end up as a possible acquisition target for it or other companies.

“How users consume and use Twitter is a key part of its future, and that is what Flipboard does well already,” said one person with knowledge of the situation. “There is going to be an inevitable crossroads for the two companies.”

Indeed, Twitter has bought several companies that help users read and discover, such as Summify.

The goal has been to better make sense of the massive amount of data that the service produces daily; to that end, Twitter has pushed to improve its user interface design on a number of devices.

And Twitter is a big part of Flipboard’s app, which is very dependent on the tweet feed and accounts for 70 percent of its links, sources said.

Flipboard is also more of a “mobile first” company, which is where Twitter is also headed even more aggressively.

Already popular on the Apple iPad, Flipboard launched its iPhone app late last year and it is prepping a version for Google Android soon.

That’s why, in addition to being a rival, it is also an obvious acquisition target for Twitter, as well as others such as Yahoo and Microsoft.

In fact, Google already tried to buy it last year, before Flipboard did a massive $50 million fundraising round that valued it at $200 million.

Its investors include Insight Venture Partners, Comcast’s venture arm, Kleiner Perkins Caufield & Byers, Index Ventures and a spate of well known angels, such as Dorsey, Facebook co-founder and Asana dude Dustin Moskovitz, Ron Conway, actor Ashton Kutcher and the investment company of former News Corp. exec Peter Chernin.

Co-founded by longtime entrepreneur McCue (Netscape, Tellme) and former Apple iPhone engineer Evan Doll, Flipboard launched to much attention in mid 2010.

Its innovative social magazine concept is attempting to make the social networking universe more accessible, consumable and, perhaps most importantly, visually arresting via its rich app.

Essentially, Flipboard pulls information from media RSS feeds and sites such as Twitter and Facebook data streams and then reassembles it in an easy-to-navigate personalized format.

Google has mounted a competitor, called Currents, as has Yahoo with its Livestand offering, neither of which have gotten much traction. In fact, sources said, Yahoo is likely to shut Livestand down completely.

There have also been a spate of other similar readers, such as Pulse and Zite.

Spokespersons for both Flipboard and Twitter politely declined comment.

Spotify's Special Projects Head Shakil Khan Moves to Path to Do Same

Kara Swisher — Fri, 30 Mar 2012 12:00:38 +0000

Shakil Khan, the well-known head of special projects for the popular Spotify music service, is taking a job with the same title at Path, the fast-growing personal social networking start-up.

Khan will be focusing on growth and international issues, and based out of London but with global duties. Path’s HQ is in San Francisco.

That’s important, since Path has been growing strongly outside its initial U.S. market, especially in Asia. In February, Path CEO Dave Morin announced that it had two million users.

In an interview last night, Khan said he will remain an adviser to Spotify’s CEO and co-founder Daniel Ek, noting that he is also an investor.

Interestingly, said many sources and also a number of reports, both Path and Spotify are in the midst of large funding rounds with hefty valuations.

In fact, Spotify is being valued at $4 billion, which was not the case when Khan came to the then-fledgling company in 2008. Taking up a job essentially as a kind of fix-it guy for Ek, he worked on a number of important initiatives, from gaining early user traction to hiring its early management to wrangling celebrities to use the service.

Khan said that he decided to leave Spotify, which has recently had a huge spurt of growth due to its recent integration on Facebook, because he has “always been a start-up guy.”

“I loved the days when people used to say, ‘What is that, how do you spell it,’” he said about Spotify. “I need those kind of butterflies, and Path is just that kind of amazing product with huge global potential.”

In an email, Path’s Morin said:

“We are beyond delighted that Shak has chosen to join the Path family as we continue our mission to build the first global personal network by helping people journal and share life with family and close friends. Shak brings a unique global perspective and skill set to Path which will help us reach and serve our members and partners across the globe in a uniquely personal way.”

And Ek, calling in from Sweden (where it is 80 degrees!), said that he was sad to see Khan go, and was also in his debt for his service to Spotify.

“I am kind of an introvert guy, and Shak is definition of social, so he was the link to the rest of the world in many ways for me and for the company,” said Ek. “So where he is going and what he will be doing at Path is perfect.”

CEO Tim Cadogan Talks About OpenX's First Profitable Quarter and Where Ad Tech Is Going Next (Video)

Kara Swisher — Mon, 13 Feb 2012 13:00:03 +0000

OpenX, the online digital advertising upstart, announced this morning that it had reached profitability for the first time, as well as “exceeding an annualized revenue run rate of more than $100M” in its fourth quarter.

It’s certainly a milestone for the Los Angeles-based start-up, which competes with a little company called Google. OpenX has raised almost $51 million in funding since 2007, the latest round being $20 million last year.

CEO Tim Cadogan — a former Yahoo ad exec who arrived at OpenX in 2008 — talked about all this, and about where the online display market online is headed, in a video interview with me last week.

Here’s the chat, and the official press release from OpenX, too:

[ See post to watch video ]

OPENX ANNOUNCES FIRST FULL QUARTER OF PROFITABILITY

Leading provider of digital advertising technology achieves annual run rate exceeding $100M

LOS ANGELES, February 13, 2012 – OpenX Technologies, Inc. (OpenX), one of the world’s leading providers of digital advertising technology, today announced it achieved a profitable fourth quarter as well as exceeding an annualized revenue run rate of more than $100M. The company also announced that it expects to continue its record of profitability during 2012 with continued robust growth across all areas of the company’s business.

2011 was a year of extraordinary success for OpenX during which the company served more than one trillion ad impressions and now handles more than 200 billion ad transactions per month. OpenX Market, the company’s unique ad exchange platform, saw a particularly strong year-over-year rate of growth of nearly 700%. This massive growth in OpenX Market is due to a growing number of publishers and advertisers recognizing the precision and strength of ad exchanges with the quality of both buy-side and sell-side customers that OpenX attracts. The company also continues to operate and manage key global partnerships, including OpenX Market Japan, a partnership with cyber communications inc. (“cci”), a subsidiary of Dentsu Inc.

The company’s advertising technology services, which include OpenX Enterprise, achieved a Q4 year-over-year growth rate of 100% compared with the same period in 2010, due to the acceleration of OpenX Enterprise, the company’s Software as a Service ad serving platform. OpenX has made significant progress over the last year in terms of both product adoption and revenue, proving its paradigm-shifting revenue serving capabilities are not only capable of driving revenue for publishers but can also do so at scale.

“2011 was a breakthrough year for OpenX with huge growth in global adoption of OpenX Enterprise and the phenomenal expansion of OpenX Market,” said Tim Cadogan, chief executive officer, OpenX. “Providing a comprehensive revenue serving solution for publishers to make them more money is the heart of what we are building and we are clearly demonstrating that we are able to do this at massive, global scale. The quality of the OpenX team and the growth levels we’re seeing put us in an incredibly strong position for 2012.”

With the launch in early 2011 of OpenX Enterprise, the Company offered the online advertising market the first true total revenue serving platform to make publishers more money. Since OpenX Enterprise combines an ad server with an ad exchange, it enables publishers to manage exclusive, guaranteed, non-guaranteed and real-time revenue sources all in one unified platform. As a result, for the first time publishers can maximize yield across all their ad revenue channels in real-time in one place.

Adoption of OpenX by major publishers, advertisers and partners has grown rapidly and is now used by thousands of customers across the world, including Groupon, cci, TheStreet.com, Turn, Invite Media, MediaMath, and [x+1].

“Reaching profitability is an important milestone in OpenX’s story,” said Rick Gombos, chief financial officer, OpenX. “What’s even more important is that we have achieved profitability by any measure of financial performance — EBITDA, cash flow and net income.”

Sarah Lacy Debuts New Tech Site, PandoDaily -- $2M+ in Funding and Guess Who's Working for Her? (Video)

Kara Swisher — Mon, 16 Jan 2012 17:00:28 +0000

As has been widely reported, well-known TechCrunch columnist and Silicon Valley journalist Sarah Lacy has a new gig: Running her own new tech news site, which debuts today.

(She’s pictured here with another recent adorable start-up of hers, named Eli.)

Not so widely reported? The site, called PandoDaily.com, will feature three of TechCrunch’s most high-profile former bloggers: Michael Arrington, M.G. Siegler and Paul Carr.

That’s right, Lacy is Arrington’s boss this time around — even though his CrunchFund venture firm will also be an investor, in a funding round of more than $2 million for PandoDaily.

Other investors — whom Lacy described as “people I like and respect” — include a panoply of tech movers and shakers, including personal investments from Marc Andreessen, Peter Thiel, Matt Cohler, Jeff Jordan, Josh Kopelman, Zach Nelson, Andrew Anker, Saul Klein, Tony Hsieh and Chris Dixon, as well as seed investments from Greylock Partners, SV Angel, Lerer Ventures, Accel Partners and Menlo Ventures.

There will certainly be questions about all these funders who are also topics of PandoDaily’s posts, which Lacy acknowledged. She said the large number of funders was calculated so that none had undue influence.

Of course, many in Silicon Valley will be watching her carefully for any conflicts of interest or punches pulled. Lacy insisted that there will not be a problem and joked that she will definitely not become a VC, referring to the controversy around Arrington becoming one while at TechCrunch.

That issue blew up like a Roman candle, of course, leaving everyone with powder burns — I called the incident a “giant, greedy, Silicon Valley pig pile.”

Interestingly, Lacy did manage to stay out of the spotlight (she was, in fact, having her baby during the worst of the controversy, which was likely more painful).

Ignoring the delicious epic revenge part of this on AOL — which bought TechCrunch and then promptly presided over a tech version of the War of the Roses (and is, ironically, an investor via CrunchFund) — PandoDaily will focus on start-ups in Silicon Valley and everywhere else that homegrown spirit of innovations reaches.

Here’s a screenshot of the cleanly designed and handsome site:

In an inaugural post, titled ““Why I Started PandoDaily,” Lacy compared the site to a colony of trees in Utah, saying, “We have one goal here at PandoDaily: To be the site-of-record for that startup root-system and everything that springs up from it, cycle-after-cycle.”

Which is kind of like TechCrunch, which she left earlier this year.

“This is not TechCrunch 2.0,” Lacy said to me in an interview last week. “But, of course, we will be compared to TechCrunch.”

Of course, especially because of the presence of its star lineup on PandoDaily — who will write regularly, along with an initially small staff of other writers — and also its plans for conferences and other gatherings.

(An AOL source, by the way, said there were no contractual noncompete issues for PandoDaily to worry about.)

Here’s a longish interview I did about PandoDaily with Lacy, who has written two books focused on entrepreneurs, worked at Businessweek and was founding co-host of Yahoo Finance’s daily show “TechTicker.”

She talks about the site’s unusual name, her wrangling over leaving TechCrunch, and the prospect of now running her own show.

Welcome back, Sarah (and call me if you need help with those dudes, as we have wrangled before).

Here’s the video:

[ See post to watch video ]

Digital Marketing Start-Up Thismoment Raises $7.3 Million From Sierra Ventures

Kara Swisher — Tue, 15 Nov 2011 15:30:58 +0000

Thismoment, the San Francisco-based digital marketing platform provider, said it has raised $7.3 million in its first institutional venture round from Sierra Ventures.

Before this funding, the company raised $4.25 million since 2008, when it was founded as a content-sharing Web site.

The company, which serves brands and agencies with its Distributed Engagement Channel platform, said it is aimed at “managing content, conversation and creative assets across earned, owned and paid media channels.” That means marketing “initiatives across Facebook, YouTube, brand sites, rich media ad units, mobile devices, tablets and digital outdoor placements,” as well as a platform to manage these social marketing campaigns.

Sierra’s Mark Fernandes will join the board. Other investors include private equity firm Fenway Partners, as well as well-known digital execs Shelby Bonnie, Jason Hirschhorn and Mika Salmi.

Thismoment said it will use the new funds to expand operations in the U.S. and also add them internationally.

Another Googley "Acqhire" -- Contextual Search Start-Up Apture to Join the Chrome Team

Drake Martinet — Thu, 10 Nov 2011 18:57:07 +0000

Google has bought Apture, the start-up that makes a browser plug-in that adds additional contextual information to Web pages for the Internet’s most prominent publishers.

The financial details of the acquisition were not disclosed.

A Google spokesperson said the search giant was interested not only in Apture’s product, but the team and the partnerships it had built.

Apture CEO Tristan Harris has spent some of the last four years wearing out the carpets in the offices of major online publishers.

In an interview today, Harris said that the Apture staffers will join the Chrome team at Google.

“We started the company to help people have more frictionless access to information,” he said. “And those features will take on new forms in the Chrome browser.”

Apture has raised $4.1 million in venture funding so far, including a $3.5 million round from Clearstone Ventures.

First Class Ticket: Social Travel Start-Up Gogobot Raises $15M in Funding at $70M Valuation

Kara Swisher — Thu, 03 Nov 2011 19:00:54 +0000

Gogobot, the social travel site, said it has raised $15 million in a funding round led by Redpoint Ventures.

Sources said the valuation for the Silicon Valley start-up was around $70 million.

Gogobot said it would use the funds to expand its business. Battery Ventures and CrunchFund also participated in the financing round. Currently, the company’s revenue is mostly tied to lead generation based on its user recommendations.

“We really think we have a lot of momentum in the space and we want to keeping pressing forward in pushing social travel,” said Gogobot CEO and co-founder Travis Katz. “Travelers want to share their experiences and it is a trend that is only getting larger.”

To compete with rivals such as TripAdvisor, Gogobot recently released a number of new features, such as an Apple iPhone app and Trip Portfolio, a scrapbook experience via collections about different destinations.

The company, which launched late last year, has raised $4 million in venture funding from Battery Ventures, Google Chairman Eric Schmidt’s Innovation Endeavors and angel investors Chris DeWolfe, Keith Rabois and Oren Ze’ev.

Here is a video interview I did with Katz last year, talking about the site, followed by the official press release:

[ See post to watch video ]

Gogobot Announces $15 Million in Funding Led by Redpoint Ventures

SAN FRANCISCO, CA (November 3, 2011) – Gogobot (www.Gogobot.com), the world’s largest social travel site, announced today that it has completed a $15 million round of funding led by Redpoint Ventures. Gogobot will use this new financing to expand its global footprint through marketing, partnerships, and outreach.

Gogobot transforms how we explore new places and capture and share our travel experiences by allowing users to harness the power of their social networks to exchange trusted travel advice and share trip plans and rich visual travel memories. This announcement comes on the heels of the launch of Gogobot’s mobile app available for the iPhone, iPad and iPod Touch, which is currently a Top 10 Travel App in 31 countries around the world.

“With its unique offering and seasoned management team, Gogobot is the industry leader in the social travel space. We believe with its vision and timely and unique service, Gogobot is poised for exceptional growth,” said Satish Dharmaraj, general partner of Redpoint Ventures.

Gogobot users can browse reviews from friends as well as share their photos, reviews and other details about the places they stayed, dined, and traveled on the Gogobot site. Gogobot automatically packages these elements into magazine-style albums, allowing friends to experience your travels with you in real time, see a map of where you were when you caught that sunset, or even make a reservation at the hotel where you stayed.

“Travel is all about discovering new experiences and sharing them with your friends and family,” said Travis Katz, Gogobot co-founder and CEO. “With this new funding, Gogobot aims to continue to grow and pave the way for a new era of travel — harnessing social media to provide users with trusted, insightful, and enriching reviews at the tip of your finger.”

Battery Ventures and CrunchFund also participated in the financing round.

The Three Ventureers: Andreessen Horowitz Joining Conway and Milner in Y Combinator Start Fund

Kara Swisher — Fri, 14 Oct 2011 21:30:53 +0000

Silicon Valley venture firm Andreessen Horowitz said today that it was joining well-known investors Ron Conway and DST Global’s Yuri Milner in the Y Combinator Start Fund, which gives $150,000 to each start-up in its semi-annual group.

Andreessen Horowitz will be investing $50,000 of the total in each entrepreneurial effort, starting with the next “class” of up to five dozen companies later this month in the well-regarded incubator.

The money comes in the form of convertible debt, which is a loan that can convert if a start-up raises a funding round. Start-ups can refuse the money, although most do not.

“I can’t tell you how impressed we have been with the quality of the start-ups that Y Combinator has had,” said Marc Andreessen in an interview with me this afternoon. “[Co-founders Paul Graham and Jessica Livingston] have become the consigliere to a whole new generation of entrepreneurs.”

Indeed. Y Combinator assembles these start-ups twice a year, giving them about $15,000 to work on their idea, but — more importantly — providing a lot of support and entree to powerful investors in Silicon Valley. Its efforts have been critical to the beginnings of many successful companies, such as Reddit, Loopt and Scribd.

“So many of the high quality seed deals have been coming from Y Combinator and we wanted to be close to all those companies,” said Andreessen. “It’s a great view of what’s coming next from the very best start-ups.”

Exclusive: Pinterest Closes New $27M Round With Andreessen Horowitz Valuing Start-Up at $200M

Kara Swisher — Fri, 07 Oct 2011 18:45:27 +0000

Pinterest, the infectious virtual bulletin board site, is poised to close a large round of funding — reportedly more than $25 million — with Andreessen Horowitz, which values the company at $200 million.

That’ll buy a lot of digital pushpins.

(UPDATE: Pinterest and Andreessen Horowitz confirmed the new funding, which is $27 million. The firm’s Jeff Jordan will join Pinterest’s board.)

In an interview, Jordan said that the amount of interest in Pinterest — get it? — was a big reason for the deal.

“People love the product, even though it is only in beta so far, with consumers who use it voraciously,” he said. “It’s elegantly social.”

Co-founder Ben Silbermann said the focus at Pinterest — which has only eight employees — was to “provide users with a place to discover and share in an inspirational way … we want to help people get in touch with their interests in real life.”

The start-up, which has no revenue to speak of yet and is still in invite-only mode, has become the hottest start-up of late in Silicon Valley, given its quick growth and compelling idea that has been called “experiential shopping.”

To me, it is just a really cool way of finding stuff of all kinds — from kids’ toys to inspiring quotes to travel tips — using a very savvy crowd of users via social visual bookmarking.

It’s kind of like Oprah on steroids, with users creating and sharing virtual collages on the handsome and easy-to-use site. Others can than “re-pin” them and great stuff rises in rank.

The site has previously raised $10 million from Bessemer Venture Partners, valuing the company at $40 million.

Email: Chamath Palihapitiya Decries Airbnb's Recent $112M Funding for Founder Control and Cash-Out

Kara Swisher — Sat, 01 Oct 2011 20:39:03 +0000

Here’s some electric weekend reading for those interested in the push and pull between venture investors and start-ups in the frothy Web 2.0 environment.

In an email to Airbnb CEO and co-founder Brian Chesky (which I obtained, embedded below), former Facebook exec Chamath Palihapitiya, who now runs an investment fund called the Social+Capital Partnership, is passing on participating in the recent $112 million round for the hot online rental site that was announced in July.

The deal — which values the company at $1.2 billion — has not officially closed yet, but includes venture firms such as DST Global, Andreessen Horowitz and others. Previous investors include Sequoia Capital.

Palihapitiya confirmed to me that it was his email and that his possible investment in Airbnb was small.

That said, his concerns center on how much voting control of new investors’ preferred shares the founders have in the latest round and also a $22.5 million cashing out, $21 million of which is going to those founders.

Another $9.6 million is being used to buy secondary stock from current Airbnb shareholders, who have to render parts of their vested stakes for the money.

Such wrangling between investors and entrepreneurs is not uncommon in Silicon Valley these days, as ever-dumber money chases ever-more-powerful geeks. But Palihapitiya’s email is a smart, reasonable and well-written argument to stop the madness.

According to sources close to Airbnb, the numbers that he refers to below are accurate, as is what appears to be an unusual level of voting control by its founders. Presumably, it is to protect the company from possible future sales on the secondary markets and to keep control with its founders as the number of investors grows.

In any case, the Palihapitiya email to Chesky is well worth the read (I have removed email addresses as a courtesy):

From: Chamath Palihapitiya
Date: Sat, 1 Oct 2011 11:16:05 -0700

To: Brian Chesky

Subject: Airbnb financing…

Brian,

Cc Marc, Reid, my deal team

Thanks again for giving me the chance to participate in your latest financing. I had a chance to review the docs at length yesterday and I wanted to follow up as, quite honestly, I’ve never seen a deal like this over ~60 investments I’ve done and I’m pretty concerned.

I’m all for getting the best valuation you can, minimizing dilution and maximizing control. We did this brilliantly at Facebook…all of our financings (except our first $$$ from Peter Thiel) were done not out of necessity but opportunity. As such, our investors had virtually no control and it resulted in a much better outcome. As we’ve discussed, I generally don’t believe investors add much to a success story and so minimizing their impact is a great strategy when you are onto something that is working.

This said, while several of these concepts are reflected in the current deal, there is one big thing that I am fundamentally against and violates my principles and will prevent me from participating in your round. When I saw that you guys were taking $31M out of the company, I didn’t think much of it as I just assumed it would entirely be via a secondary sale.

But as I understand the deal, it seems that you are doing only $9.6M in secondary and $22.5M as a dividend to common (of which $21M goes to you and your co-founders). I am really uncomfortable with this and don’t think its in the spirit of building a good, long term business. Effectively, it is a strategy that allows you guys to take money out of the business and not dilute yourself — I’m not sure why this is such a big deal when you guys are almost 90% vested and the financing is at $1.2B where your dilution is marginal. Further, it excludes many of the employees that probably have helped you and your co–founders get the company to this place as most of these folks probably don’t have any stock but have unexercised stock options and thus won’t get a dividend.

My basic principle on this stuff is that if you want liquidity, that’s fine, but you should make it available to everyone. Otherwise, no one should get it. Your current deal is the farthest away from this principle that I’ve seen in a while…this strategy has been done once before — at Groupon. We can see how “well” they are doing and how short term the investor community is now viewing their motives. I really think you can do better than this…and that you are better than this.

Separately, when you look at successful tech companies, it seems that dividends are an approach used by cash rich operations to distribute excess earnings — in fact, the most successful, cash rich tech company in the world, Apple, hasn’t issued a dividend and they have more than $75B in cash! Again, while I think Airbnb will be a good company, this is nowhere near the truth now — you guys still need to scale and build this thing for the future.

I really think you are onto something but I would implore you to not take the easy way out. Treat your employees the same as you’d treat yourself. Do things that you will be proud of and can defend to anyone including your Board, employees, prospective hires etc. In such a competitive hiring market, you are competing with not just your obvious competitors, but also any successful tech company who is also looking for great talent. A principle that treats your employees as well as you’d treat yourself is a huge strategy for differentiation, retention and long term happiness of the exact types of people you will need to be successful. In contrast, if you are viewed as self-dealing and shady, it will only hurt your long term prospects…

In summary, I’m passing on this financing because I strongly disagree with what’s going on. I’m not sure who advocated this approach but I did mention this to Reid [Hoffman, another Airbnb investor via Greylock Partners] last night and he was of a similar mind to myself and surprised this was the approach being taken. If you want some good advice — I would ask that you consider pinging him about different ways to think about going about the liquidity portion.

If you change your mind on how to close this financing, let me know and I’d love to reconsider. Otherwise, good luck and lets keep in touch.

Take care,

Chamath

From Russia With Love: Twitter Confirms "Significant" Funding With DST Global

Kara Swisher — Mon, 01 Aug 2011 16:54:31 +0000

Without giving any financial details, low down in a blog post this morning, Twitter confirmed it had gotten “significant” new venture funding from DST Global of Russia, as well as from existing investors.

As AllThingsD previously reported, DST will be the biggest player in a total round of $800 million for the San Francisco microblogging site, with $400 million going to cash out employees and other shareholders. The new funding will value Twitter at $8.4 billion.

In a quote, DST’s Yuri Milner said:

“Twitter is one of the few companies that has truly changed the world. Twitter’s astonishing growth is a testament to how important it is becoming to more people every day, and why we couldn’t pass up the chance to be a bigger part of its future.”

DST has funded all the prominent Web 2.0 companies, from Facebook to Zynga to Groupon, so now it is apparently Twitter’s turn.

Here’s the full blog post from Twitter:

Your World, More Connected

Twitter continues to grow around the globe at a record pace. Just a year ago, we delivered 65 million Tweets a day. Today, we generate over 200 million Tweets per day. One year ago, there were approximately 150,000 registered Twitter apps. Now, there are more than one million that connect to Twitter. And our team has grown from 250 people to more than 600 in the past 12 months.

More importantly, Twitter is where people around the globe come to instantly connect to what’s most meaningful to them. This makes Twitter the only place in the world to get a real-time pulse on what people are thinking and doing practically anywhere.

We’ve come very far in a short time. Now we have an opportunity to expand Twitter’s reach with a significant round of funding led by the venture firm DST Global, with the participation of several of our existing investors. We will use these resources to aggressively innovate, hire more great people and invest in international expansion.

Thank you for everything you’ve done to help get us here and for inspiring us to work even harder. We can’t wait for you to see what we have planned to make Twitter even better.

FindTheBest's Kevin O'Connor Talks About Comparison Engine, Now Running Hot on $6M in Funding (Video)

Kara Swisher — Thu, 28 Jul 2011 16:15:03 +0000

Last week, after FindTheBest nabbed $6 million in funding from Silicon Valley’s Kleiner Perkins, veteran entrepreneur Kevin O’Connor talked to me about the content platform, which structures data into a hopped-up comparison service for products and services.

Comparing, organizing and filtering everything from summer camps to mountain bikes to investment advisors to Hollywood agents, it’s a leads business for “considered decisions,” with added hopes of selling its technology to anyone in need of a human- and machine-powered curation engine.

The new venture funding for the Santa Barbara, Calif., company comes after a small seed round of $750,000 from O’Connor, who founded online advertising pioneer DoubleClick and others.

Here’s a screenshot of the service, which could take almost any topical direction, as well as the video of my interview with O’Connor:

[ See post to watch video ]