GumGum Press Release 7/31/2008 – Lots of Announcements!
Update: GumGum no longer offers image licensing. We are now the world’s largest in-image ad network.
GumGum Secures Series A Financing; Officially unveils revolutionary new licensing platform
Company releases non-flash based licensing platform, traction soars. Company raises Series A led by First Round Capital and Crosscut Ventures.
SANTA MONICA, CA – July 31, 2008 - GumGum, an analytics and monetization platform for content online, announced today that it has secured a Series A round of financing. First Round Capital and Crosscut Ventures will co-lead the round. Howard Morgan and Brian Garrett join the company’s board of directors.
The Series A funding will enable the company to build out Version 2 of its licensing product. No longer utilizing Flash technology, the new version is an enormous leap forward, providing full flexibility with content, improved monetization and no required changes in existing workflow between publishers and content providers
GumGum has experienced explosive growth with its new offering. Despite being in private beta for the last 60 days, GumGum is currently tracking over 300 million license views per month.
GumGum continues to validate its usage-based approach to content-licensing. GumGum adds MTV Europe as well as Gawker Media’s Gawker, Jezebel, Defamer, and io9 to its growing list of publishers. “GumGum reduces our photo licensing costs while still allowing us to publish high quality photographs from a variety of photo agencies,” said Nick Denton, Publisher of Gawker Media.
“GumGum has developed an innovative platform to connect content creators with publishers,” said Howard Morgan of First Round Capital. “While a fixed-fee content license might make sense for offline media, it makes no sense online. We feel confident that this team can grow a great business. The company has already signed several of the world’s largest photo agencies and is generating millions of content views per day.”
“GumGum is committed to solving the content licensing problem on the Internet. We have listened to our customers and are proud to announce this game-changing service,” said Ophir Tanz, CEO and co-founder of GumGum. “First Round Capital and Crosscut Ventures are absolutely top-notch. We are thrilled with their involvement and look forward to working with them as we continue to grow the company.”
# # #
GumGum represents a new business model for content licensing online. We use perfect information to facilitate a fair transaction between publishers and content providers. The result is a system that leverages usage-based licensing models to enhance monetization, increase access to content and much more!
GumGum was founded by Ophir Tanz and Ari Mir in 2006. The site publicly launched in November 2007 and currently tracks over 300 million license views per month. David Sacks (former COO of PayPal and current CEO of Geni.com) and Michael Jones (President of Userplane/SVP at AOL) sit on the company’s advisory board. The company previously raised $225k in angel funding.
About First Round Capital
First Round Capital is an early stage venture capital firm managed by Josh Kopelman, founder of Half.com and Howard Morgan, a founder of Idealab. First Round Capital provides seed-stage investment for innovative technology companies, often providing a company’s first outside capital. As former entrepreneurs, the principals understand the challenges of launching a new enterprise and look to take an active role in portfolio companies.
About Crosscut Ventures
Crosscut Ventures is a Los Angeles-based seed-stage venture capital firm founded by Rick Smith and Brian Garrett. Crosscut brings a depth of experience and an extensive network of relationships to help a company through its earliest phases of growth. Crosscut is looking for seed-stage opportunities in digital media, which includes online advertising, mobile, gaming, consumer internet and next generation infrastructure and analytics. Above all else, we are looking for great entrepreneurs who understand what it takes to win and who are looking for a financial partner committed to building world-class companies.