Friendster will announce a $10 million round Monday, according to the Journal. The lead investor is Palo Alto-based DAG Ventures with participation from two original investors Kleiner Perkins Caufield & Byers and Benchmark Capital. Based on our earlier funding estimates, that would put the total investment in the $24-29 million range.
No valuation was given but I’m not sure anyone can say what Friendster might be worth now. Late last year, we were told Viacom could have acquired Friendster for $5 million—and turned it down, in part, because it cost more than that a year to operate. Since then, Friendster has gone off the market, revamped with the help of a $3.1 million recap round—and, the biggest wild card, won a major patent for social network technology. Another major patent win could be on the way.
— Kent Lindstrom, president of Friendster, told the Journal investors pressured management for performance improvements. The new round will be used to upgrade the site and to conduct research that will lead to new features. The new site focus is on an older audience—20s, 30s—than MySpace and Facebook.
Related:
—Effects Of Friendster Patent Win Yet to be Seen; Company Weighs Options
—Friendster’s Money Raise: $3.1 Million
—Friendster Was Its Own Worst Enemy; MySpace Faces External Threats
—Friendster Sales Saga Continues; Viacom Takes A Pass