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We talked with Noah about how the company grew out of a business plan competition at the University of Southern California, his recent funding from the Maverick Angels, as well as how the firm hopes to stand out among a crowded list of comparison shopping sites. Finally, what are you using your recent funding round for?
If challenged, the founder usually cites the Facebook business model (free service to users, revenue from ads), but forgets that Facebook has had several hundred million in funding, and has been profitable only in the last two years. Don’t count on that to fund your startup. For advertisers, this is called cost per click (CPC).
By now we all know that the largest part of the online spend has been SEM (search engine marketing) where people buy CPC (cost per click) links to display alongside the “organic&# search results in the search engine. For starters – the team is exactly what I look for when I’m looking to fund entrepreneurs.
If challenged, the founder usually cites the Facebook business model (free service to users, revenue from ads), but forgets that Facebook has had several hundred million in funding, and has been profitable only in the last couple of years. Don’t count on that to fund your startup. For advertisers, this is called cost per click (CPC).
Over the past 4 years LA’s tech fundings have growing at a 30% compounded annual growth rate (CAGR) which is > 4 times the US average VC CAGR (7%). Both are massively funding other LA tech companies through what Fred Wilson once defined as “recycled capital.” In the last month alone (ie not captures in the $1.5
Los Angeles-based Aggregage (www.aggregage.com) is looking to help aggregate the content across multiple blog publishing sites, and curate that information into specific, B2B niche vertical web sites. At that time, monetizing by advertising didn't exist, and web developers were having to hand roll those experiences. Robert Flynn: Yes.
It's pretty typical in the life of a startup, where we've proven we have a product people like, and use and demand, and can scale, and we did a pretty effective job of learning about advertising and making revenues off high yielding, CPC advertising. Back to the company, what's your status now in terms of funding?
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