A while back I said that we in adult were missing the boat. A lot of insanely large (and usually stupid) Web 2.0 deals are happening and we aren't getting any of the money that's floating around.
Well, here's one company that's getting in on the action:
First round funding is usually the smallest of the official rounds. If they got $1mil now they can expect around $7mil for the second round 6 months to a year later if they get some traction in the marketplace. Some companies can even go for a third if the idea really takes off. Usually, they end up selling to a larger company before the third round though.
I'm not saying that this idea is a great one and I'm not saying they will get the types of numbers I mentioned for a second round... I haven't studied it enough to really give an opinion. But I do know that this is the first one to combine adult with Web 2.0 sensibilities that has gotten a seven figure first round and went public with that info.
Shooters, what do you think about this deal and the site?
Can you see any more companies on the horizon? Not necessarily like this business model but that can garner this kind of initial investment?
Well, here's one company that's getting in on the action:
Zivity, a social network that aims to occupy the intersection of Playboy, MySpace and American Idol, has raised a $1 million first round financing from private investors. The San Francisco-based company, currently in private beta, seeks to match professional photographers and models willing to pose for risque pictures. While that's nothing new, Zivity claims to be the only social net that lets its members distribute royalties. Zivity members decide what photos are published on the site by casting votes for models and photographers. Aside from determining who and what gets posted, the votes will also decide who gets paid and how much.
The site was co-founded by Scott Banister, who previously started IronPort Systems, an anti-spam company acquired earlier this year by Cisco for $830 million. The company also says that Banister helped create the bid-for-placement model used today by Google Adwords and co-inventor of the e-mail payment system used on eBay. Release
The site was co-founded by Scott Banister, who previously started IronPort Systems, an anti-spam company acquired earlier this year by Cisco for $830 million. The company also says that Banister helped create the bid-for-placement model used today by Google Adwords and co-inventor of the e-mail payment system used on eBay. Release
I'm not saying that this idea is a great one and I'm not saying they will get the types of numbers I mentioned for a second round... I haven't studied it enough to really give an opinion. But I do know that this is the first one to combine adult with Web 2.0 sensibilities that has gotten a seven figure first round and went public with that info.
Shooters, what do you think about this deal and the site?
Can you see any more companies on the horizon? Not necessarily like this business model but that can garner this kind of initial investment?
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