JibJab Closes $7.5 Million Third Round Funding


imageAnimated e-cards site JibJab has raised a $7.5 million third round funding to promote the company’s modest plan to “reinvent the $8 billion greetings industry.” New investors Overbrook Entertainment and Sony (NYSE: SNE) Pictures Entertainment joined existing backer Polaris Venture Partners for the round. The Venice, Calif.-based company raised $3 million in October 2007 and $6.4 million in its first round back in June 2006.

As for 10-year-old JibJab’s master plan to upend the greeting card market, which it only entered about a year ago, the company is betting on building up paying subscribers for premium content. While much of the animations on the site are free, JibJab charges $15.99 a year or $9.99 for six months. The idea is that joining entertainment and greetings will provide enough revenue to keep adding additional services. Still, while JibJab claims it has 6 million members, it did not say how many are paying subscribers.

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