Profitable Web 2.0? That’s Probably Worth $5.35 Million
It was bound to happen. Many people have pointed out the link between the tech crash and today’s Web 2.0 venture frenzy. It always seemed backwards (traffic -> venture capital -> make money). In the “real world”, businesses are expected to prove their worth before they get venture backing. You know, actually posting profits before getting funded.
Well, it has happened. iContact (formerly intelliContact by Broadwick) has managed to do just that. With over 11,000 clients, the company turned itself to Web 2.0 by building RSS / Blogs and Syndication into its already hugely successful Opt-In Email Marketing Platform.
Updata Partners recognized that, for once in the history of the world, a young, successful, profitable company was able to seamlessly move into the Web 2.0 sphere (iContact won the SEOMoz Web 2.0 Marketing Award), and jumped on the opportunity to fund such a well deserving, high-potential company. They closed on a $5.35 Million round of funding, in what will surely be a terrific move for both companies.