Despite Tough Economic Climate, Hubdub Raises Series A Funding
We’re delighted to announce that we’ve successfully raised our first round of venture capital funding. It’s been a tough climate out there, I’m sure you’ll all agree (we pitched the day Lehman Bros went bust!) but we’re very excited to now be able to focus all our energies on improving and growing Hubdub even more. We want to thank you all for making Hubdub what it is today, and hope you’ll join us all on this next part of the Hubdub journey. It’s going to be awesome! Here’s the Press Release that we issued today:
Edinburgh, January 14th, 2009 - Daily reports of dire economic circumstances have not prevented , Hubdub.com, the Scottish-based web start-up, from securing £810,000 ($1.2m) in Series A funding.
In a downturn, more people stay at home and look for cheap entertainment. And that can only be a good thing for Hubdub – a website which allows users to predict the outcome of news events by staking virtual cash on the results.In these difficult times, raising series A funding is indeed a feat in itself. But Hubdub has also successfully brought on board some big hitters in the European web scene.
Led by Pentech Ventures, the UK’s leading software VC company and Scottish Enterprise’s Scottish Co-Investment Fund, funding is also backed by a group of angel investors, including Rikki Tahta, CEO of Covestor.com; Simon Murdoch, CEO of friendsabroad.com and Tim Jackson, founder of QXL.com.
Since launching last year, Edinburgh-based Hubdub has garnered a substantial and loyal following. With a quarter of million unique visitors trading around 100,000 predictions per month, Hubdub has altered the way news is being discovered and interacted with. Some users are spending several hours a day on the site, with many of them confessing to a definite Hubdub “addiction”.
Currently partnered with Reuters, The Independent and Huffington Post, Hubdub will now focus on growing its partnership base and developing functionality to allow media partners to carry Hubdub prediction markets on their site. With each user generating hundreds of page impressions per month Hubdub technology is delivering social media type engagement to regular news content.
Marc Moens from Pentech says, “The news industry is currently seeing a structural change to their business. While off-line ad revenues are slumping, news media companies are aiming to build web businesses with significant user engagement. We see Hubdub as a key enabler for media companies to build that engagement around their content.” Marc Moens will be joining Hubdub’s board.
Andrew Sloane, Senior Investment Manager at Scottish Enterprise Investments, added: “This is an exciting investment for Scottish Enterprise, as it represents our first venture in prediction markets technology. This sector is still in its early stages, however we see considerable scope for expansion and development, and are confident that Hubdub has the capability to capitalise on these opportunities. We are delighted to be able to support such an innovative Scottish company alongside our partner Pentech Ventures”
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