Social recommendation service MyStrands has bagged another $25m in financing to expand into new markets, such as shopping.
The funding, adding to the $24m it raised just six months ago, was led by Spanish bank BBVA and previous investor Debaeque.
MyStrands has now raised $55m in total, so why does it need all this cash?
According to its blog, the funding will be used to expand its recommendation engine beyond music:
“The future of the web is personalisation and we are committed to leading it.
"These new funds will allow us to go one step further, enabling us to grow to the next level of product development, always respecting our core proposition: help people discover new things.”
In addition, MyStrands clearly intends to invest some of the cash in expanding its staff. It already has 90 personnel, so expect three figures soon... that's quite a (growing) cost base.
So what do these people do? Well, the company’s main product so far is a music recommendation engine, which can be used online or via mobile. Like one of our favourite apps, Last.fm, it can synchronise with iTunes to learn more about its users’ tastes.
MyStrands has also launched a very nifty music video service for aggregating and recommending content from YouTube. The company has yet to make a profit but claims to have made more than $12m in sales of its various products during 2007.
Marshall at Read/WriteWeb is enthusiastic about the company, especially if it is moving into other areas of recommendation, such as shopping.
“Now MyStrands has a war chest to hire top scientists and try and take recommendation to the next level for any type of data. If you can't see the value in that , then you're probably not paying attention.”
Music recommendation site nets $25m in funding