Blog Post

Sharing App Bump Picks Up $16M To Expand Business To Payments And More

Bump Technologies, which makes an app that lets users share information with each other by bumping their iPhones/iPods or Android devices together, has picked up $16 million in funding in a round led by Andreessen Horowitz.

Also participating were Sequoia Capital, Ram Shriram from Sherpalo, and Ron Conway from SV Angel, according to a blog post from Bump. Marc Andreessen will also join the board of Bump.

Bump has had a huge growth spurt in the last year. It currently has 25 million subscribers, adding one million in the last two weeks alone. The company’s iOS app lets users share photos, music, contacts, calendar events and text messages by touching their devices together. The company says a new android app with enhanced features is “in the works.”

Bump’s founders, David Lieb and Jake Mintz, say that traffic has increased five-fold in the last five months (via Mashable). They also say that of its 25-million base, some seven million are “active” (having used the app in the last 28 days).

Business model: At this point, the Bump app remains free, and the main focus is to continue to grow the user base and monitor how the app is used, but Lieb and Mintz say that the company has been approached by other companies like record labels to potentially work together to pass content on to users. There is also potentially a larger play in the m-commerce space, too: the app already has a function to let users transfer money to each other.

The company currently employs 15 people but is in the process of hiring more.

This year is kicking of with a lot of VC activity in the mobile space: in addition to participating in the Bump funding, Sequoia is also the lead investor in the $25 million round of funding at mobile payment startup Square, announced yesterday. Last week, Skype announced it was buying mobile video streaming and sharing company Qik: Andreessen Horowitz has large investments in both companies.

The current round of funding for Bump comes about 14 months after it raised $3 million in a round led by Sequoia.