Venture Wire - May 2007
Social Media Site Buzznet Banks $6M Series B Round
Social media network Buzznet Inc. raised a $6 million B round of financing, bringing the Hollywood, Calif.-based company's post-money valuation to over $20 million.
New investor Redpoint Ventures led the round, while return investor Anthem Venture Partners contributed to the funding, bringing the company's total financing to date up to $7.5 million, said Buzznet Chief Executive Anthony Batt. Anthem's founder and Managing Director Bill Woodward and Redpoint Partner Allen Beasley sit on Buzznet's board.
Buzznet was formed as a beta product in 2003, while Batt worked full-time as an engineer at another company. Buzznet officially launched in 2005, when the company received its first round of funding.
Buzznet is a social networking and media site that builds communities around users' music interests. Users can post and view user-generated and original online content, including content about and from participating bands - such as Fall Out Boy, AFI and Cartel. The company currently counts over 7 million users, 80% of whom are U.S.-based, with the majority between ages 12 years and 17 years old, Batt said.
Batt said the Web site differentiates itself from MySpace and other social networking sites in that it builds communities around "passion groups" and enables users to meet each other based on specific music tastes instead of an individual profile. And while Yahoo Music and MTV.com provide Web browsers with information about bands, Batt said Buzznet allows fans a more interactive space to communicate about and directly to music groups and each other.
While the site currently focuses on music, the company will use the funding to create other channels. The company also intends to grow its workforce to between 40 and 50 employees, from its current 28, by the close of 2007. Buzznet earns revenue through advertising.
Batt expects the funding to last through the end of the year, but said the rate at which the company uses the funding depends on how quickly the company builds additional channels. Batt added that the company is not currently seeking additional funding, but already has been approached by investors and with buyout offers.