Hunch, Backed by Bessemer Venture Partners, Acquired by EBay
New York’s Hunch, which uses its technology to provide data insights on what consumers want, said on its blog Monday that it was acquired by online auction heavyweight eBay (Nasdaq: EBAY) in San Jose, CA. Financial terms were not disclosed by the companies. However, reports valued the deal at $80 million.
EBay says it plans to use Hunch’s technology, which uses algorithms and input from the users’ friends via social networks to offer recommendations, to suggest new items to eBay customers.Two-year-old Hunch says it will retain its standalone website, keep its entire staff, and remain in New York. Hunch lets users share and receive recommendations based on their individual tastes in products. Hunch’s investors include Bessemer Venture Partners, General Catalyst, Khosla Ventures, and individual investor Ron Conway.
In a press release, eBay said that Hunch’s co-founders Chris Dixon, Matt Gattis, and Tom Pinckney will stay with the company. Gattis and Pinckney are alums of MIT. CEO Dixon is a co-founder of Founder Collective and previously worked at Bessemer Venture Partners.