Update: The amount is small: $800K, according to SAI.
Stocktwits, which expands into twits writing about stock (a joke, guys…relax) on Twitter, has received an undisclosed amount from a panoply of NYC tech investor types. The first round was led by Roger Ehrenberg’s IA Capital Partners (whose own company Monitor110 famously imploded earlier this year), and included a number of other investors: James Altucher: Founder, Stockpickr; Columnist at TheStreet.com; betaworks; Bill Bishop: Co-founder of Marketwatch; Alan Warms, former VP and GM of Yahoo (NSDQ: YHOO) News and a few others. The beehive of investors reminds me of the unfortunate situation with Daylife: too many investors too early; too many egos with too little at stake for each, but let’s hope they have figured out a way to avoid it.
Stocktwits hopes to build on the immediacy and community functions of Twitter for a stock picking community. Here is how it describes itself: “Users can eavesdrop on traders and investors, or contribute to the conversation and build their reputation as savvy market wizards. The service takes financial related data – using Twitter as the content production platform – and structures it by stock, user, reputation, etc.” I can see some potential for running into regulatory issues with such advice, though I am sure the company has thought of the pitfalls. The company has tied up with Bloomberg to create a filtered feed of Stocktwits commentary, that is supposed to be integrated in the terminal along with other non-traditional sources. For some more details, see this VB post.