More VC money for local review websites
Article Date: Sep 16 2008Qype, which runs local review websites covering European cities, has received a second round of venture capital (VC) financing worth €8 million (£6.4 million). The round was led by pan-European VC firm Wellington Partners, with existing backers Advent Venture Partners and Partech International also participating.
As part of the deal, Wellington general partner Eric Archambeau will join Qype’s board as a non-executive director along with Pelle Tornberg, the former chief executive of Swedish freesheet business, Metro International.
Archambeau says Qype’s fast growth in user and contributor numbers was a key factor in encouraging Wellington to invest. Founded in Hamburg in 2005 by CEO Stephan Uhrenbacher, the company’s sites in English, German and French now attract more than five million unique users per month.
Adds Archambeau, ‘We were also attracted by the early revenue traction in the local advertising market in Europe, suggesting the strong revenue potential for the company. Local search is one of the most attractive growth markets on the internet.’
London-based Advent Venture Partners and IT-focused Pentech International first invested in Qype in 2006.
The business, which sells advertising around reviews from users, was launched in the UK in September last year.
