June 12, 2007

$7 Million More for PayPerPost to Play With

Extra, Extra Read All About It! The following is a press release from PayPerPost.com:

The PayPerPost Revolution Accelerates, Sponsored
Blogging Marketplace Secures $7 Million Series B

Draper Fisher Jurvetson leads round and joins Board of Directors

ORLANDO, FL – (June 12, 2007) – PayPerPost, the leading marketplace for advertisers to reach bloggers and other consumer content creators, today announced it has completed a $7 million second round investment led by Draper Fisher Jurvetson, an investor in the company's Series A and one of the world’s leading high-technology venture capital firms. The financing brings the total amount of capital raised by PayPerPost to over $10 million, giving the company considerable resources for further development as the industry’s leading Consumer Generated Advertising marketplace. Additional participants in the round include existing investors Inflexion Partners and Village Ventures as well as new investor DFJ Gotham. With this investment, DFJ Managing Director Josh Stein also joins PayPerPost’s Board of Directors.

“PayPerPost created this exciting new advertising space and has established itself as the industry leader,” said Ted Murphy, chief executive officer of PayPerPost. “Although we’ve only used a portion of our first round capital, this added support from investors unlocks significant growth potential. Our content creator and advertiser ROI metrics clearly demonstrate the upside for PayPerPost’s model. We intend to use this capital to build the infrastructure, visibility and professional expertise necessary to reach and retain a greater network of advertisers and content creators than ever before.”

Since its founding in June of 2006, PayPerPost has signed more than 6,500 advertisers to its groundbreaking service, which has enabled Consumer Content Creators to be compensated for their efforts discussing specific companies, products or services via blogs, videos or other media. The content creators are required to disclose relationships with advertisers on their blog, providing transparency for the end reader. Over 125,000 Internet postings, most in the form of blogs, have already earned money for their creators through PayPerPost’s innovative marketplace. PayPerPost recently released PayPerPost Direct, a disruptive new service that allows advertisers to contract and negotiate directly with individual bloggers they identify through a safe, managed system.

“PayPerPost has laid a strong foundation for the future,” noted Tim Draper, founder and managing director of Draper Fisher Jurvetson. “It continues to attract a critical mass of participants from both the advertising and blogging communities. Analogous to Overture’s sponsored search model, we believe PayPerPost’s business model holds disruptive potential and will enable the company to thrive in the evolving paid-content arena.”

To mark the $7 million dollar funding, PayPerPost has launched a new website detailing the company’s service offering at http://www.payperpost.com. Bloggers and advertisers can easily sign up at the site and begin leveraging the self service marketplace.

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What do I think they should do with the extra $7 million? I would put most of it into developmental work to enhance the user experience, give the advertisers/bloggers more tools to use and make the website function as smooth as possible. I have never started a business that needed this kind of funding, but I think that a lot of businesses can only do well when others see positive things and invest in this.

If you haven't already heard or seen, PayPerPost.com is a service that allows their clients to advertise on blogs. With this system, advertisers are able to harness the power that blogs have to get the word out there, good or bad, about products and services. All blogs must meet specific criteria, of which includes that fact that they MUST disclose that they are being paid for posts about goods and services. The number of bloggers is growing by the day. There is an excellent community of bloggers and advertisers on the site daily, willing to help anyone that may have any questions or concerns.

This can only be a good thing for PayPerPost.com, right? Getting more interest in their business can only lead to bigger and better things! I am excited to see how this will change how people are able to advertise on blogs. I am a life long member and will certainly be adding other blogs that I have to the system. Read more about PayPerPost.com...

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