Mixed Media Labs, which is behind picplz, an online and mobile app that lets users add special effects to photos, has raised $5 million from VC firm Andreessen Horowitz. Founder Dalton Caldwell also started social music site imeem and subsequently sold that company to MySpace (NSDQ: NWS) a year ago. Caldwell says that most of imeem’s core engineering team is now working at Mixed Media Labs.
Andreessen Horowitz has also invested in Instagram, which is behind a competing photo app. Ben Horowitz, who is joining Mixed Media’s board, however, tells TechCrunch that he will be investing more additional cash in Instagram. CNET reported today that Instagram is in the process of raising a new funding round that will value the company at $20 million;