Social App Incubator Buddy Media Raises $6.5 Million Second Round
This story was written by Joseph Weisenthal.
Buddy Media, a developer of social networking apps, has raised a $6.5 million second round from Softbank, European Founders Fund, Greycroft Partners, Ron Conway, as well as its previous backers.. The NYC-based company previously raised $1.5 million from Howard Lindzon, Peter Thiel, Roger Ehrenberg Mark Pincus and James Altucher, so its total $8 million raise comes from a list of very high profile firms and individual investors. Among the company's apps is the Acebucks application on Facebook, which is basically a virtual currency or rewards points scheme. With the new funding, the company is officially launching its own ad network, as have the other big social net apps developers. Announcement.
Investor and board member Roger Ehrenberg discussed the funding on his blog: "From the time we completed the Series A round it has been a whirlwind, closing strategic deals with applications developers, commercial deals with marquee advertisers and ad agencies and recruiting top people to accelerate growth. These were heady times. Then it became clear the Buddy Media should pick one of two paths: do a strategic deal with a large media company or raise another round of capital, build out the ad network and blow things out. Over a six-week period the company received two offers and five term sheets from great firms. And after much deliberation, Mike and the Board all agreed that raising the additional capital, building the business and executing against the vision was the right way to go."
Disclaimer: Greycroft is an investor in our company.
By Joseph Weisenthal