The company raised $100 million in the initial Series C tranch in AprilRead more...
The Series B round is led by RRE Ventures, AOL Ventures, and others
URL shortening service Bit.ly announced late Thursday that it raised $10 million in a Series B round led by RRE Ventures, with participation from new-comer AOL Ventures and previous investors O’Reilly Alpha Tech Ventures, SV Angel, Founders Fund, Mitch Kapor, and several other angels.
Founded in 2008, Bit.ly raised $5 million in financing between the time of its launch and 2010, bringing its total funds raised to $15 million. The New York, NY-based startup hit it big in May 2009 when it became the default link shortening service for Twitter. Despite Twitter’s breakup with Bit.ly in December 2009 to use its own URL shortener, Bit.ly has continued to grow. To date, the company has shortened four billion unique URLS, and in this year alone, Bit.ly links have been clicked on 40.6 billion times. Over 200 million shortened Bit.ly links are clicked on every day. These days, Twitter only accounts for one-third of Bit.ly’s links, down from 60% in December 2009. In September of this year, six billion Bit.ly links were clicked on, up from 3.4 billion in March.
“Bit.ly sits at the confluence of three broad market trends: the growth of content sharing via social services, the growth of mobile, and the emergence of ‘the web of things,’” said Bit.ly CEO John Borthwick in the company’s blog. “As these trends move though the market, short links are the addresses that connect people, things and machines.”
The bit.ly web site is now the 69th largest according to Google’s Doubleclick adplanner. Additionally, the company is working with over 3,000 large clients, as well as several small companies and individuals. Some of the company’s larger customers include Amazon (amzn.to), Microsoft (on-msn.com), Yahoo (Yhoo.it), The New York Times (nyti.ms), Pepsi (pep.si), Foursquare (4sq.com), Formspring (4ms.me), CNN (on.CNN.com), ESPN (es.pn), BBC (bbc.in), and NPR (n.pr). You have to admit, some of these are really cute… I think my favorite is nyti.ms. That’s adorable.
Impressively, Bit.ly links now represent 7% of all of the URLs on the Internet. “The short link business has now become an established piece of the social real time web infrastructure,” wrote Borthwick. “The entry of Google and others into this business affirms the importance of the category. At bit.ly, we believe that in a few years every link will have a short equivalent — so our job at bit.ly is clear.”
While bit.ly’s pro accounts comprise its primary source of revenue, it is currently working with The New York Times on a personalized news aggregator called News.me, which will be a traditional advertising-based model.
Image source: bit.ly
Support VatorNews by Donating
Read more from our "Trends and news" series
The company says its platform allows providers to manage up to 90% of pregnancies virtuallyRead more...
The company helps women track their reproductive health from first periods to menopauseRead more...
Related Companies, Investors, and Entrepreneurs
Joined Vator on
We are company founders first and investor second: we have built companies from the ground up, including PayPal, Facebook, Napster, Plaxo, Palantir Technologies, and Clarium Capital. We have experience from concept to realization, from shared offices to public offerings. Every stage of the company creation process is familiar to us, from finding seed capital, to building defensible products, scaling up the organization, and realizing lasting value for employees and shareholders.
Our current investments include Facebook, Slide, Geni, Powerset, IronPort Systems, Zivity, Quantcast, and Project Agape. Our fund is $50 million and we focus on investments in early-stage consumer Internet companies. We typically invest $500,000 - $1 million per investment. At the end of 2007, we raised $220 million for The Founders Fund II.