Biz360 Plans Social Media Focus With $10M Round

VentureWire, May 8, 2008 by Ty McMahan

Market intelligence software maker Biz360 Inc. has for years offered products for analyzing global news and information. Now the company is beginning to shift its strategy to social media and has raised $10 million in new funding to roll out new products.

Foundation Capital led the insider round with full participation from other current investors Granite Ventures and Scale Venture Partners.

Chief Executive Brad Brodigan said the round is considered a Series B funding, as the company's three prior financings were all considered components of the Series A. The company has raised more than $45 million to date, according to VentureWire records.

Brodigan said Biz360 plans to use the funds to fuel development of next-generation products that capitalize on emerging market research opportunities spurred by the evolution of consumer behavior on the Web. Brodigan said more details about the new products will be announced later, but the focus will be on naturally occurring behaviors such as volunteered product reviews.

For example, traditional market research involved questions like, "Are you happy with your phone service?" Brodigan said that rather than forcing opinions out of consumers, the emerging social Web has produced opportunities for people to volunteer product reviews.

"I think the reason we're having a lot of momentum right now is there is a transformation of social media," Brodigan said. "People used to discount social media as a bunch of crazy people. Now the market realizes that social media influences behaviors. It's considered mainstream."

Brodigan declined to discuss revenue figures or a valuation. The company is not profitable.

Biz360 delivers media and market intelligence to businesses, providing them with a 360-degree view of their marketplace. The company gathers and analyzes traditional and social media about an organization, its brands, its competitors and its products to deliver real-time information that helps its clients shape market perception, respond to competitive threats, evaluate trends and issues, and improve the return on their marketing investments.

Founded in 2000, the San Mateo, Calif.-based company has less than 100 employees. Clients include AAA, Aetna Inc., AstraZeneca PLC and Sun Microsystems Inc.