Freewebs Secures $11 Million Investment To Fuel Its Rapidly Expanding Web Publishing Community
Silver Spring, Md. - September 11, 2006 -- Freewebs.com, the free do-it-yourself Website publisher, today announced it has secured an $11 million Series A investment co-led by Columbia Capital and Novak Biddle Venture Partners.
Freewebs is improving the Web experience for millions of people globally by making it incredibly easy for anyone with an Internet connection to build a free, high-quality Website.
Freewebs enables users to establish a complete Web presence that unifies a broad range of services including Websites, photo albums, blogs, profiles, videos, live chat, e-commerce and more. Freewebs members benefit not only from its powerful Web publishing tools, but also from a vibrant community of millions of others creating and sharing on Freewebs.
With these new funds, Freewebs will continue adding to its talented team of developers to enhance its members’ experience, and build out its sales, marketing and product teams.
“When my brother Zeki and I founded Freewebs in 2001, we set out to create a service that even our mother could use,” said Haroon Mokhtarzada, co-founder and CEO. “We’ll never lose sight of that, and are indebted to the invaluable feedback of our members who continue to define the product.”
“The progress made by Freewebs since its inception at the nadir of the technology recession—a transformation from simple Web-building tools bootstrapped by two recent college graduates to a major global community of more than 11 million users—has been inspiring,” said Shervin Pishevar, president of Freewebs. “Freewebs is an innovation company and we are fully committed to helping invent new technologies and services that push the Web forward. This investment will allow us to build a better Freewebs that stays true to its roots.”
Since its inception, Freewebs has been operationally funded by selling premium services, domain names and banner ads. As part of a shift that gives more power to users, the company will also use this investment to continue cultivating and expanding partnerships with the advertising community.
"Advertisers are searching for more innovative ways to connect with a broader range of consumers on-line, beyond just 15-25 year olds in the US," said Arun Gupta at Columbia Capital. "Freewebs is a new media company that is in the right place to capitalize on this shift. Its expansive, global community of user generated web sites opens an entirely new dimension for brand awareness and loyalty. It provides a powerful, targeted platform for users to share and sponsor brands to their network through a site they have created."
“The marketplace is cluttered with Web 2.0 companies but Freewebs is unique because its versatile publishing platform ties them all together,” said Phil Bronner, partner at Novak Biddle Venture Partners. “Freewebs allows Internet users to centralize their Web presence on one, high-quality site, freeing them from the hassle of managing multiple sites. Our investment in the company is a testament to the strength of Freewebs’ service offering, market opportunities and growth strategy.”
As part of the investment, both Arun Gupta and Phil Bronner will join Freewebs’ board of directors.
About Freewebs
Freewebs.com guarantees anyone with an Internet connection can easily create and share a complete, high-quality Website using its versatile publishing platform. Focused on improving the ways people express themselves and communicate, Freewebs offers Web pages, blogs, profiles, photo albums, video, music, e-commerce, live chat and much more. Today, more than 11 million individuals, groups, organizations and small businesses are part of the Freewebs community, using Freewebs to create and host their sites. Founded in 2001, Freewebs is privately held and based in Silver Spring, Md.
About Columbia Capital
Columbia Capital is a venture capital firm specializing in the communications and information technology industries. Founded in 1989, Columbia Capital has helped establish more than 100 early stage ventures and currently manages more than $1.5 billion in capital. Columbia Capital has been an active participant in the wireless communications industry since its formative period nearly 20 years ago. In the wireless communications and entertainment categories specifically, Columbia Capital has been a founding investor in such notable successes as XM Satellite Radio, Nextel Communications, WNP Communications, Advanced Radio Telecom, NeoWorld Communications, and Digital Television Services. Columbia Capital has also helped establish numerous other successful wireless service providers including MetroPCS, Mobile Satellite Ventures, Revol Wireless, Coral Wireless, and WCS Wireless. For more information, visit Columbia Capital at www.colcap.com.
About Novak Biddle
Novak Biddle Venture Partners is a leading early stage venture firm focused on investments in the mid-Atlantic and Eastern United States. Novak Biddle provides equity financing and assistance to the management of young information technology companies, and seeks business situations where the combination of ideas, dollars, experience, and relationships can create long term, sustainable value. A sampling of companies funded by Novak Biddle include: Matrics, Blackboard, Paratek Microwave, NEW Customer Service Companies, and Object Video. For more information, visit www.novakbiddle.com.