SocialMedia Raises $6 Million From IDG

via TechCrunch by Erick Schonfeld on 1/29/09


Social networking advertiser SocialMedia raised $6 million from IDG Ventures. Existing investor Charles River Ventures also participated. The company was shopping around for a larger investment of around $20 million with the investment bank Savian, but decided to take a smaller amount. At least, that is the story the company is going with.

The company claims that it had $16 million in revenues last year and says it was profitable for three consecutive months thanks to the launch of a new advertising product called Word of Mouth. These are opt-in display ads that asks people on social networks to answer a question or take a poll. The point of these ads are to find people who have an affinity for a brands and then rebroadcasting that affinity to their friends.

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