Blog Post Closes $32 Million Third Round; Got In Before The Bust

Visual search and shopping engine closed a third round of funding worth $32 million, VentureBeat reports. Luckily for Palo Alto, Calif.-based, the round officially closed at the end of July, well before the market went belly up. Menlo Ventures led the funding, with Crosslink Capital and other previous investors also joining. The engine has raised a total of $54.4 million since its inception (as Riya) in 2004, including $3.3 million in a supplemental round led by Nokia (NYSE: NOK) Venture Partners, Bay Partners and Leapfrog Ventures in January. The cash should give a good cushion if its shopping-focused model takes a hit from a slowdown in consumer spending.

One Response to “ Closes $32 Million Third Round; Got In Before The Bust”

  1. Anonymous

    It's a real shame… had a good model, a solid plan, a smart exec team… and then came the market downturn.

    Over the last few months, Munjal has fired the marketing teams, the sales team and the biz dev teams in a desperate attempt to slow the rapid hemorrhage of cash. (How do you monetize a site after cutting loose the people driving the revenue?).

    Despite cutting the headcount from 40 down to 20, rumor has it that the burn rate is still close to $3 million per month with revenues in the tens of thousands and an ever-shrinking market share.

    It's just a matter of time before Peter Rip and company hand Mr. Shah his walking papers, but will it be in time to salvage some portion of their investment? Probably not.

    As I said, a real shame…