Social Action Network YouthNoise Raises $1.5 Million From Omidyar, Others

Omidyar Network led a $1.5 million round for non-profit social network YouthNoise, which started in 2001 as a global online community for Save The Children. Other investors include a consortium of the Surdna Foundation, the Rappaport Family Foundation and Virgin Mobile USA. YouthNoise spun off in 2004, creating a network for ages 16-22. YouthNoise.com carries only youth-generated content and focuses on social action. It has 113,000 registered users from across the U.S. and more than 170 countries worldwide; the site averages about three million page views per month. (via SiliconBeat)
Update: An earlier piece, actually, from the SF Business Times (via MSNBC.com) says the company plans to raise another $3 million this year; a third round, possibly in 18 months, would go toward international expansion. Omidyar invested $500,000 this round and will add $1 million if YouthNoise raises $2 million. Other first-round investors and amounts: Surdna Foundation $400,000; Rappaport Family Foundation, $100,000; Virgin Mobile USA $100,000.
Dena Jones Trujillo, an Omidyar investment manager, suggested the plan to make the non-profit self-sustaining and set up the first-round pitch for funds. Trujillo: “Without capital upfront to build those revenue streams, they’re never going to get to the point of self-sufficiency because they’ll spend all their time fundraising.” The article by Sarah Duxbury includes some good detail on the non-profit search for investment capital.

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