Blyk raises $50.7 million

Who said we're in the dumps?

Despite the fact that the economy is crumbling, mobile advertising is deteriorating and venture capitalists are investing less, some deals are getting done. And, they're getting done in a big way. 

Blyk, a Finland-based mobile network targeting the 16-to-24 year-old demographic with an advertising-supported model, raised $40 million Euros, or $50.7 million, in funding. 

The news was announced on the company's blog:

“The advertising industry and operators have expressed a strong interest in bringing Blyk into new countries and €40 million in additional funding demonstrates the commitment by investors to the Blyk media model.” said Pekka Ala-Pietilä, Blyk’s CEO and Co-founder. “However, we like everyone else are feeling the impact of the world’s financial situation. As a result, in parallel to securing the new investment, we’ve taken decisive steps to cut costs and streamline our organization.”

By launching a new media partnership strategy, alongside organizational realignment, Blyk will gain greater flexibility and speed to capitalize on new growth opportunities and global demand for its media model.

Blyk launched in the UK in September 2007 where it has achieved major successes both in member growth and advertiser usage. In its first year, Blyk achieved a milestone of over 200,000 members and has run over 2000 campaigns with an average response rate of over 25%. With 180 brands on board today, Blyk is well on track to hit its goal of 200 brands using the service by year-end.

“We have a winning formula which makes Blyk attractive globally. The Blyk media model, which is based on highly relevant messaging, has proven to be an extremely effective form of advertising to the youth audience.” said Antti Öhrling, Blyk’s Co-founder and Executive Director. “Blyk’s new partnering strategy will make this powerful model available for operators, brands and young people around the world.”

Few companies can get away with raising this much cash these days. Venture capital investment in Europe fell 10% so far this year, according to VentureSource, a research unit of Dow Jones & Co.