Distributed media network Glam Media has raised $10 million more, this time specifically for its Japanese and German operations, reports PaidContent. The fifth round of funding in as many years of existence comes from Japanese VC Mizuho Venture Capital and several local advertising / media companies, but also includes a separate investment round for its German joint-venture from partner Hubert Burda Media. The total amount of capital invested in the company so far now exceeds a whopping $100 million (not including an additional $20 million in debt).
Not that Glam isn’t putting their funding to good use. In 2008, the company made a couple of strategic acquisitions and keeps on displaying a clear focus on international growth, while at the same time launching interesting side projects like Tinker.
Late last year, we reported that Glam Media was slowing down payments to its publishers as well as making significant pay cuts although it self-reported its Q4 to have been ’surprisingly strong’. One month later, ComScore data showed Glam Media was one of the fastest growing websites in the US. It was also the ninth largest publisher of display ads, serving up an estimated 2.1 billion ad impressions per month.
It will be interesting to watch how Glam performs the next few quarters.
Congrats to Glam on the funding and, more significantly, their growth. It’s noteworthy that they are able to make money off of display advertising, and internationally no less. Do you think sites like Facebook, with fast-growing international user-bases, can learn a better way to monetize from Glam?
125 million BUYS a lot of growth… the question is can they provide a return on this investment once this inflow of cash stops and their growth slows down.
Jon
http://WoodMarvels.com – Create Unique Memories
Ameeda, how exactly are they making money if they require funding after five years?
Jason,
“it self-reported its Q4 to have been ’surprisingly strong’.”
“It was also the ninth largest publisher of display ads, serving up an estimated 2.1 billion ad impressions per month.”
I’m guessing if they are getting that many impressions on site with a highly targeted audience , they are making a good amount of money. Another assumption is that Glam finds it easier to place effective ads when the content is also editorially produced and not the usual UGC from most social sites.
Again, why do they need 10 million in funding if they are making a good amount of money?
money down the drain…
Maybe not..this is the time to build one’s strength..they recently acquired few vertical ad networks.
If you can raise that kind of funding, for that kind of product in this shitty market… then hat´s off to them.
who will buy them?
Wow, how is Glam able to raise money in the middle of the market downturn where most companies are facing major layoffs or flat shutting down? While AOL & Yahoo struggle, they seem to be investing in growth and new projects like Tinker as you noted. Good to hear some good news for a change.
There is always a sucker around the world that is willing to buy into Silicon Valley BS. Japanese for example, are very good at that.
Glam is at the center of the advertising crash, their content is one of the least favored by advertisers as it centered around amateur and semi-pro blogs. The ad rates for these has been nearing Zero and the bloggers themselves, understand they cannot live from their blog and turn their attention elsewhere.
Yes, Glam is big but not big enough, they will find a merger opportunity with other loosing companies, like Yahoo, but I cannot see them making good on the investments.
What I don’t understand why their executive list and stuff is so large, some weeks ago they said they will lower the wage to some of the employees, what they should do is say thanks and goodbye to 50% of the execs and stuff so they could save and build on what they have until the economy is improving.
Deadpool within 18 months.
Your ugly trademark infringing site will be dead much sooner.
They saw a big opportunity and have went for it, doesn’t sound cool to go after the women market, but that’s where the ad $$$’s are. Saw on Colbert that it is not cool to have a business model like YouTube, Facebook and Twitter I guess. Wait to be acquired and then is Google’s problem- still losing $500 Million on YouTube. Glam has earned the respect of the industry as a company that knows how to get ad revenue.
Meh. What’s $10,000,000 down the toilet?
lol Goldie Wilson – I like the sound of that!
Man – all this funding – whoa! What a triumph!
pfft – the real triumph is making something from nothing. Who cares how much money some fundmonkeys give you? Wanna really impress? Build that same silly company on 100k. Sorry – but all these infusion posts are dumb.
$10,000,000 to come out with web apps like tinker and online publications like Brash. Get out of here! I would love to pitch to that VC! I wonder when VC’s will get tired of losing all this money on web startups. Thats the TC story I’m waiting for.
The only metric that matters is how fast a company can grow an idea to have a large reach, huge revenue, and profitable. Startups know this, Twitter is best with no revenue, like Youtube was, as all of its value is from growing reach right now. Once it starts revenue, most of its value will shift from reach to revenue and sustainable growth. Cleverly, Glam built the reach on a network model, and is now using venture capital to grow revenue. If it reaches critical mass — it is a very valuable company given the self destruction of Yahoo/AOL and Google failing in display. Last downturn created DoubleClick, Google and MySpace, there have to be new disrupter’s this downturn too.