May 22, 2006

Bebo Closes $15M Financing

Michael Arrington

42 comments »

San Francisco based Bebo popped a few bottles of champagne and announced a very healthy $15 million round of financing, led by Benchmark Capital. Bebo is one of the largest and fastest growing social networks, with 24 million users and 2.5 billion page views per month.

More from PaidContent and Jeff Clavier.

This is a deeply funded market niche. Market leader Myspace is owned by News Corp. Facebook is funded to the hilt. Friendster is backed by Kleiner Perkins (and Benchmark before the recap). Newcomer Tagworld raised a healthy $7.5 million from DFJ. And tagged, focused on much younger audiences, raised $7m from Mayfield.

Bebo is focusing on non-U.S. growth, particularly the UK. That makes a lot of sense. The U.S. market is completely saturated between Myspace and Facebook.

Update: Jeff Clavier has a post that clarifies Bebo’s numbers.

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Trackbacks/Pings (Trackback URL)

  1. Screenwerk » Blog Archive » Will MySpace Lose Its Cool?
  2. Bebo lands $15m in funding » at Tom Raftery’s I.T. views
  3. TechCrunch » Blog Archive » Benchmark Invests in Pageflakes: Ajax Desktop War Heats Up
  4. TechCrunch Japanese アーカイブ » BenchmarkがPageflakesへ投資:Ajaxデスクトップ戦争一段と活気が高まる
  5. Tekdreamz » We are not cheap !
  6. iain tait | crackunit.com » Blog Archive » BT luvs Bebo
  7. Dead2.0 » Antisocial Networking
  8. Techcrunch » Blog Archive » Bebo passes MySpace in the UK
  9. Techcrunch » Blog Archive » Netvibes secures a $15 million investment
  10. TechCrunch UK » Blog Archive » London the tops the European start-up league.
  11. Michael Birch, CEO Bebo.com « The Paradigm Shift
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  14. 随意商业评论 » Blog Archive » » 10个最成功的web2.0站点
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Comments

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  1. Darren McLaughlin

    Good for them. I never heard of them even once, so that’s great news for them.

  2. Brian Balfour

    I’m not sure I agree that the market is saturated here in the U.S. There is still plenty of room for smaller niche social networking sites and there are still a few other general SN sites out there such as MyYearBook.com and Multiply.com that have a decent user base and are seeing very healthy growth.

    However I agree with Bebo’s strategy to focus on non-US growth because there is more room for opportunity.

    -Brian
    http://www.SocialDegree.com

  3. Paul Fabretti

    It is interesting that in the UK, this is taking off better than free money!

    If I am right in thinking, it is the ability with bebo to create online communities around bricks and mortar institutions such as workplaces, but in particular schools (a bit like the incredibly successful friendsreunited.com) that is making it so popular.

    The largest selling UK newspaper, the noritiously conservative Daily Mail has already run a double-page spread on the risk of allowing their kids to use it (as well as myspace!) so no doubt this is going to massively boost subscriber numbers.

    Where Bebo will gain compared to say myspace, is in this ability to bring together already existing communities online. Users already know other users so establishing oneself will be less of hassle as it would with myspace for example.

  4. Pete Cashmore

    Yeah, Bebo is big in the UK. I’ve been told that it’s set to overtake MySpace later this year in terms of popularity:

    http://mashable.com/2006/05/07.....ives-bebo/

    It’s pretty much a crossover between Facebook and MySpace - all based around schools and colleges/universities. Interestingly, their video is provided by VideoEgg.

  5. Mike

    I find it interesting to see that Bebo is trying to integrate well established technology players (VideoEgg and Skype) instead of trying to develop everything inhouse (i.e. MySpace IM, etc.).

    Would be fun to see a round-up here on TechCrunch on the biggest players and what the sweet spot is of each. I have never used Bebo before and was surprised to hear how many users they have.

  6. Colin Strummer

    I see streakr.com that you reported on a few months ago is invite only, looks like they’ll be entering the market soon too…that space seems to be getting hotter…

  7. Calvin

    Ahh, bebo, the anti-christ of social networks.

    The amount of e-mails I receive from Bebo’s viral marketting is disguistingly annoying!

  8. Paul Fabretti

    Interestingly, to follow up from Brian’s post (#2), that compared to the US, the UK is dramamtically underserved with community-style sites. The only well-known sites are friendsreunited.com (where old school friends catch up!) and myspace.

    Admittedly, online has few barriers to creating friendships apart from geography but the ability to generate further strong links between members by allowing a local connection is surely going to be a web-wide winner as long as it continues its localised angle.

  9. Erik Kalviainen

    Yesterday, Bebo was mentioned in an article on Digg:

    http://digg.com/links/MySpace......_For_Teens

    It makes me think about the nature of the MySpace/Bebo/Facebook community. If the number one demographic of these sites are teens, then what happens as they grow up? Teens are notoriously fickle, and not known for their loyalty. Does this continually leave room for yet another social networking site to edge their way into the space? A cooler one, one with more street cred?

  10. Joe Anderson

    Bebo is amazingly popular in the UK. At one point, the owner, or someone, of Bebo came onto BBC Breakfast to describe social networking. Apparently it’s the UK’s biggest social networking site.

    No-one I know knows of MySpace or Orkut.

  11. Dimitar Vesselinov

    What do Bebo, MySpace, Facebook, Tagworld and tagged have in common? They aim at the Anglosphere.
    http://en.wikipedia.org/wiki/Anglosphere

    There are lots of emerging markets the different social networking sites could be interested in:
    China, India, Mexico, Russia, Eastern Europe, Turkey, Pakistan, Brazil, South America.
    http://en.wikipedia.org/wiki/Emerging_markets

  12. paul

    does anyone know if these numbers are being audited at all. Are 24 million people really viewing 104 pages on Bebo per month?

  13. Darren McLaughlin

    “does anyone know if these numbers are being audited at all. Are 24 million people really viewing 104 pages on Bebo per month?”

    Yes, and Santa Claus is real ;)

  14. Richard

    It’s a shame it would so difficult to change over from MySpace to other (less horribly designed) sites, only because doing that would involve persuading everyone I know that it was worth their while to move over to Bebo which, unfortunately, won’t happen.

  15. Daniele Levy

    If Bebo wants to succeed outside of the US, they need to capture significant momentum in the UK (as they are doing) and in Germany. Outside of those 2 markets, and short of going to Japan/Korea where the bar for product features, functionality and design is way higher than in most western markets, they will have a tough time monetizing whatever traffic they get, no matter how impressive it is.

    The challenge for all the social networking sites in the US has been to convert the eyeballs into dollars. Even the undisputed domestic market leader, MySpace, with billions of page views in the largest advertising market in the world, does a relatively poor job of deriving revenue from the site visits. An even tougher job awaits the winners in the international markets.

  16. web20guy

    This shows that VC money is not flowing into other more innovative concepts.
    Bebo is just another effort to get many eyeballs and make money fast.

    Are the next googles and skypes getting funded at all?

  17. John Handelaar

    It may be big in the UK. It’s absolutely *enormous* in Ireland.

  18. JL101

    There are a lot of regional Social Networking sites popping up. Friendster has a huge following in the Phillipines. I have not spent much time on bebo, but I keep hearing their name pop up. All i can say is….Good Luck…. Every article I read seems to pull a new player into the game. The reality is that only time will tell. I personally think AOL’s new Social Networking site will kill a lot of these little guys.

    ____________________________________________________________
    Are YOU a Lost Cherry? Find yourself at LostCherry.com. I did: http://www.lostcherry.com/john

  19. Wil Schroter

    We put the social networking feature into the Go BIG Network (http://www.goBIGnetwork.com) and applied it to how entrepreneurs (like the ones that I’m sure read TechCrunch) connect with each other.

    It’s been especially useful for people to find stuff like a Java programmer for a particular job or an angel investor for a startup. It’s worked incredibly well.

    When you start to break social newtorking down into particular interest groups that can use the functionality to improve communication and do more business, it becomes more interesting. In our case, applying it specifically to the startup ecosystem has proven to be real effective. I think along those lines you’ll see quite a few startups pull out chunks of a social network and build a community around a particular focus.

  20. Craig

    I really dont’ think AOl’s new sns will kill what you call the little guys. 24 million users is hardly little. I personally thing AOL has nothing new or exciting to offer in this market.

  21. Miguel

    I am new to this whole 2.0 thing but it seems evertime I read this Calcanis person’s name, he’s acting like a bufoon.

  22. tash

    please will you add me to your msn thing plz byeeee xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

  23. Angel

    i fink dat bebo is gr8 but ma teachers at ma skool are tryin to ban it and are tryin to make us delete our bebo accounts which is out of oreder

  24. trina

    how do i get on bebo

  25. Cammy

    There are two things that must take the blame for the state of this world. Computers and mobile phones. What has it come to when we no longer communicate face to face and everything that is said is written in a text or an e-mail. Whatever happened to community spirit? Even when I grew up and I’m only 23, neighbours used to talk to each other, now they don’t look each other in the eye. Social networking comes when you get out and meet people, not sitting in front of a computer waiting for that e-mail. Bebo is for the introverts not to mention it being a haven for stalkers and paedophiles.
    So, what are you doing tonight? Will it be a thoughtful bottle of wine and then round to friends for a chat or another boring night of lonliness in front of tv or computer.
    Think about it.

  26. princess

    get a lyf cammy!!!!!!!!! bebo roks hard.