In late April, Socialtext CEO Ross Mayfield anounced the company had closed its Series B, then challenged readers to come with the details. Turns out the lead investor was Tim Draper at Draper Fisher Jurvetson. Existing seed investor Omidyar Network increased its support. SilconBeat’s Matt Marshall hints that “a large enterprise software company is also considering an investment.”
Mayfield details the VC process in a post titled “The Process of Fundraising and Making Sausage”. Since the funding closed, Socialtext has hired a person a week (sales and engineering hires are high on the list) and rented office space in Palo Alto. It’s quite a shift for the bootstrapped company, which, as Marshall notes, started in December 2002 with about $1,000 from each founder and $600,000 in seed money.
The funding round was managed using a Socialtext wiki workspace. Here’s a redacted version.
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