Wednesday, December 10, 2008

Gasta News: Search Engines still pull in investors (Kosmix)

Kosmix Adds A Big $20 Million Round; Time Warner Leads; Ed Zander Joins
By Tameka Kee - Mon 08 Dec 2008 08:41 PM PST

Search technology company Kosmix has picked up a big $20 million in a fourth round of funding led by Time Warner Investments. Existing backers Accel Partners, Lightspeed Venture Partners and DAG Ventures also participated in the round, and interestingly, former Motorola CEO Ed Zander joining as a private investor. Mountain View, CA-based Kosmix has raised $55 million in funding since its launch in 2006 as a health-centric vertical search firm, and it has since branched out into other areas like travel. It plans to use the funds to help build out its network.
Kosmix’s search tech pulls in various kinds of content, including standard text results from engines like Google, articles and forum posts, images, video and podcasts, and aggregates it in one spot for the user. Of course, it incorporates ads within the results, but also runs its own sites, health portal RightHealth and MeeHive, a personal news aggregator. (Previous offshoots RightTravel and RightAutos have been absorbed back under the main URL).
And the VCs have no major worries about the broader environment: Kosmix’s business model “should continue to generate strong revenue growth” despite the economy, according to Rachel Lam, SVP and group managing director of Time Warner (NYSE: TWX) Investments. “[It] could be an important strategic partner to many divisions of Time Warner.”

No comments: