Another Indicator of a Hot Sector
I wrote today about execs jumping to the word of mouth marketing space, saying it was an indicator of something exciting going on. Another indicator? Funding. Today BzzAgent announced (PDF) receiving $13.75 million in VC funding, co-led by General Catalyst Partners and IDG Ventures Boston. The company says it will use the dough to “expand its market position and organizational infrastructure.”
Understandable why a company like BzzAgent would be attractive to investors. It’s got well-known clients (Anheuser-Busch, Lee Jeans, Levi’s, Sun Microsystems) and it’s run in such a way — with a passel of volunteers — to keep operating costs low.
Of all the WOM companies, BzzAgent in particular has caught a lot of criticism over its methods. The firm recently changed its disclosure standards for “agents” to try to address one issue.
UPDATE: Ok, I should amend to say that Procter & Gamble’s Tremor has also caught a lot of criticism, especially for its work with children.