Offerpal’s Virtual Money Service Gets $15M In Funding
PostedbyChris BenjamininInternet, New TechonFeb 17th, 2009 | 0 commentsHere’s some good news in a particularly troubled time for Internet startups, and it’s especially piquant for anyone who’s been following the rise (and challenges) of social gaming: Offerpal Media is announcing today that it has secured $15 million in Series B funding led by D. E. Shaw Ventures. (InterWest Partners and North Bridge Venture Partners, original investors in the Fremont-based company, also participated.)
That’s a lot of money to invest during a notably down market, but after a phone conversation with Offerpal CEO Anu Shukla, I can see why. The company was profitable four months after its October 2007 launch, and it continues to generate $30-40 million in monthly revenue, according to Shukla.
What will surprise many is how it makes that money: by linking real world marketing offers with virtual currency from hundreds of popular social games running on Facebook, MySpace, etc. Say you want some extra “FFS Coins” to spend in the Friends For Sale Facebook app. You can buy Coins for real cash — or you can complete a transaction with one of Offerpal’s advertising partners. Sign up for a Netflix account, for example, and get millions of virtual FFS Coins as a bonus. Netflix gets new customers, pays Offerpal for each successful acquisition, and Offerpal sends a cut of the revenue back to Friends For Sale developers.
See the full article at GigaOM.
Related posts:
Offerpal’s Virtual Money Service Gets $15M In Funding
PostedbyChris BenjamininInternet, New TechonFeb 17th, 2009 | 0 commentsHere’s some good news in a particularly troubled time for Internet startups, and it’s especially piquant for anyone who’s been following the rise (and challenges) of social gaming: Offerpal Media is announcing today that it has secured $15 million in Series B funding led by D. E. Shaw Ventures. (InterWest Partners and North Bridge Venture Partners, original investors in the Fremont-based company, also participated.)
That’s a lot of money to invest during a notably down market, but after a phone conversation with Offerpal CEO Anu Shukla, I can see why. The company was profitable four months after its October 2007 launch, and it continues to generate $30-40 million in monthly revenue, according to Shukla.
What will surprise many is how it makes that money: by linking real world marketing offers with virtual currency from hundreds of popular social games running on Facebook, MySpace, etc. Say you want some extra “FFS Coins” to spend in the Friends For Sale Facebook app. You can buy Coins for real cash — or you can complete a transaction with one of Offerpal’s advertising partners. Sign up for a Netflix account, for example, and get millions of virtual FFS Coins as a bonus. Netflix gets new customers, pays Offerpal for each successful acquisition, and Offerpal sends a cut of the revenue back to Friends For Sale developers.
See the full article at GigaOM.
Related posts:
