Cozi CEO Confirms $5M Funding, Affirms Advertising Business Model
Gregory T. Huang2/17/10Leave a CommentFollow @gthuang
Maybe online advertising revenues are coming back—at least in certain markets. That’s what I thought after catching up yesterday with Robbie Cape, the founder and CEO of Seattle-based Cozi. Earlier this week, the family-focused software company disclosed in an SEC filing that it has raised $5 million in new equity funding. The news was first reported by paidContent and then TechFlash.
Cape declined to give details about the new investment, other than to say it comes from a new strategic investor. He said the deal does not reflect any shift in the company’s strategy or revenue model. “We’re still fanatically focused on families, and we’re very bullish on the advertising business model,” Cape said. He added that in terms of advertising, the company was oversold in five of the last six months of 2009, and it has “significantly expanded” its reach over the last several months. (I took this to mean it has brought in a bunch of new advertisers as well as end users.)
Cozi now has about 2.5 million registered family members (representing 1.3 million families). That’s up quite a bit from 1.5 million people (and half a million families) last June. The company makes Web-based software to help busy families coordinate their schedules, organize their activities and chores, and communicate with each other. Its software runs on PCs, laptops, touchscreen devices, and smartphones. Cozi currently has 23 employees.
The company has benefited from strong partnerships with companies like Dell, MeadWestvaco, Meredith Corp., Nestle, and Gannett. It previously had raised about $16 million from angel investors, Gannett, and others.
“The best news is we’re consistently seeing more and more companies coming to talk to us, about assisting them with their strategy in the home,” Cape said. “We’re poised for an incredibly exciting 2010.”
Gregory T. Huang is Xconomy's National IT Editor and the Editor of Xconomy Boston. You can e-mail him at gthuang@xconomy.com, call him at 617-252-7323, or follow him on Twitter at @gthuang.
