SocialMedia Networks Inc. Attracts Series B Funding Led by IDG Ventures SF and Co-Investor Charles River Ventures
SAN FRANCISCO,CA — Jan. 30, 2009 — SocialMedia Networks, the largest independent social media advertising network, delivering ads within 5,000+ applications running on Facebook, Bebo, Hi5 and MySpace, today announced that it has secured Series B financing of $6 million. The investment was led by IDG Ventures SF with co-investment from Charles River Ventures.
SocialMedia Networks provides an independent social media advertising network. Their primary product is Word-of-Mouth ads, which are sold to brand advertisers. These ads are shown within a social network like Facebook, MySpace or Twitter to the friends of the user who engages with branded content. In the majority of the cases, the process starts when a consumer interacts with an opt-in banner (where they answer a question, fill out a poll, etc.) the results of their interactions are then delivered to their friends through the Word of mouth ad.
"We have followed SocialMedia for months as it has become the leader in how social networks are monetized," said Alex Rosen, Managing Director at IDG Ventures SF. "We are excited to become investors in SocialMedia, and are looking forward to applying our media business expertise towards building out its sales and increasing its partnership activity."
"Our new product really resonated with brand advertisers leaving us with record profits and the ability to take on less growth capital," said Seth Goldstein, CEO and co-founder of SocialMedia Networks. "We are in a great position to now work on corporate partnerships and grow our sales team and are thrilled to have IDG Ventures SF as a financial partner in our business"
SocialMedia Networks raised initial venture investment through the Charles River Ventures QuickStart program, a seed funding program that allowed SocialMedia Networks to prototype its idea and test the market potential prior to series A financing.
SocialMedia.com is the largest independent social media advertising network, delivering ads within 5,000+ applications running on Facebook, Bebo, Hi5 and Myspace. The company has created the SocialMedia Advertising platform, enabling advertisers to buy positive "word of mouth" about their products and brands while reaching over 25M monthly unique users through its network.
Web Site: http://www.socialmedia.com
About IDG Ventures SF
IDG Ventures SF is an early-stage venture capital firm investing in New Media and IT companies in the US. The fund is part of IDG Ventures, a global network of technology venture funds with over $2 billion under management and 10 offices across Asia and North America. The fund works closely with International Data Group (IDG), the world's largest IT media company. By combining the IDG platform – an unparalleled combination of global publishing, market research (IDC), and conferences and exhibition resources – with years of hands-on experience in early-stage company building, IDG Ventures helps its portfolio companies understand their markets better and penetrate them faster than their competition. Leading technology companies that IDG has invested in include Netscape, Excite, Infoseek, Epiphany, F5 Networks, BabyCenter, Service Metrics, and Spinner.com in North America and Vinagames, Ctrip and Baidu in Asia.