Jambool, the startup behind the Social Gold micropayments platform, has closed a $5 million funding round led by Madrona Venture Group, with Bay Partners participating as well. The company has now raised around $6 million, after a $1 million round in Q3 2008.
Jambool initially started off as a developer for games on social networks — a lucrative but very crowded space that includes players like Zynga and Playfish. In fall 2008, the company decided to switch its focus from game building to providing a platform that other developers can use to quickly integrate microtransactions. That suite of products, collectively referred to as Social Gold, now includes an an in-game payment system that includes support for credits cards, mobile payments, and online transaction systems like PayPal and Google Checkout; a virtual currency system; and a set of analytics tools for developers to track their in-game economy and performance. Going forward the site plans to offer a subscription product in the new future, as well as more self-serve options for developers.
There are a number of other startups looking to help monetize the social web with micropayments, which include Gambit and OfferPal. These companies also have to worry about social networks launching their own payment platforms (Facebook has one that has been in testing for a few months), though companies like Jambool have the advantage of being able to offer a ‘universal currency’ that works across multiple social networks.
I recently wrote some thoughts down about why I decided not to do micropayments in this knol:
http://knol.goo...sygvtji3to54/1#
The problem is decision cost and the lucrativeness of advertising where compared to direct payments for very tiny items.
Will this open the door to micro-investing?
boring. name me 3 micropayment ideas that worked? trashpool.
micropayemnts can be a great way of monetisition for socal networks or game developers.social networks can use this way to decrease quantity of ads per page by using it and can fulfill loos in revenue by micropayments.
Buying points towards your favorite games, this idea may attract gamers.
Micropayments traditionally have flopped, but they were spread across too many different platforms, too many hurdles. Jambool creating a universal currency with mass reach evens out the playing field.
Wow, the worst branding of the month award goes to these guys.
The fact that transaction data runs across social network feeds doesn’t make it any more social that calling Avocados trucked across the country Asphalt Avocados.
And ‘Gold’, seriously? This word when not connected to anything that’s actually made of gold can only be related to online money laundering and Ponzi schemes, 30 second infomercials or 80’s high-end wannabe design and financial products.
I think that $5MM is a good time to stop letting the interns name the products and make your logo. Do it right.
micro payments is a good way to monetise social networking apps.
i think their in game payments is a good feature