StumbleUpon, a discovery engine, has just announced that it has completed a $17 million Series B round of financing. The funding will be used to continue to invest in the company’s core discovery technology, expand to new platforms and grow the employee base.
The financing includes investments from Accel Partners, August Capital, DAG Ventures, First Round Capital and Sherpalo Ventures. The previous round of funding was led by Accel Partners, August Capital and Sherpalo Ventures.
“We are excited to have DAG Ventures join our existing investors in this new round of financing,” said Garrett Camp, StumbleUpon CEO and co-founder. “With this new investment, we will make it even easier for people to find interesting and relevant content on the Web, whether they are on their desktop, mobile device or even TV.”
For StumbleUpon and some of its investors, this isn’t their first time at the rodeo. Founded in 2001 by some scrappy Canadians, the company moved to San Francisco and scored $1.5 million from investors in 2005. Those investors included Ram Shriram (Sherpalo Ventures) and First Round Capital.
In 2007, eBay purchased StumbleUpon for $75 million in cash. For early investors like Ram Shriram, that was a nice payout. Many questioned eBay’s decision to purchase StumbleUpon — the move never made much sense.
In April 2009, StumbleUpon’s founders bought the company back from eBay for a reported $29 million. The beauty of the buyback? Some of the investors — including Sherpalo Ventures — were the same investors in the pre-eBay days.
“StumbleUpon continues to grow quickly and deliver on its ambitious goal of powering personalized content discovery across all media and platforms,” said Sameer Gandhi, Partner, Accel Partners. “Content discovery is a significant opportunity, and we are excited to continue to support the leading company in the space.”
Since its initial Series A investment in April 2009, StumbleUpon has more than doubled its registered user base to more than 14.7 million and more than tripled its content recommendations to more than 800 million per month.
In addition, the company has surpassed one million installs of its iPhone and Android applications since launching them in August 2010. More than 60,000 marketers have used San Francisco-based StumbleUpon to promote their products and services. [via Mashable and Biz Journals]