Social media analytics company Media6Degrees has closed its $9.8 million first round, which was opened back in August with U.S. Venture Partners. While the New York company initiated a $9 million round, it only took $7 million from USVP and $300,000 from various angels.
Instead of opening up a new round of financing, Media6 extended its first round subscription window to its newest backer, Venrock, which ultimately invested $2.5 million in the company. Separately, Media6 raised a $2 million convertible note last spring from Coriolis Ventures.
Venture capital has stalled to a great extent compared to last year, as the economy has worsened. But even as investors hold back, those in the analytics field still appear attractive. For investors, the answer is simple: the demand for ROI is only getting higher and providers like Media6, which was started by former MSN exec Joe Doran, are as good a bet as any out there right now. Other recent examples of analytics startups attracting healthy amounts of venture capital include video-centric company TubeMogul, which raised $3 million last month; in early March, MarketShare Partners received an undisclosed amount of funding; search-based analytics firm Enquisite has completed an $8 million second round in February; and that same month, another analytics company called 7 Billion People got $3 million in funding.
By David Kaplan