| Widgets have become a
common way for consumers to access snippets of personalized news,
entertainment and other content online. But the fickle nature of Web users
can leave individual widgets popular one day and forgotten the next.
Gigya Inc., which has raised a $9.5 million Series B financing led by
Mayfield Fund, sees itself as immune to such passing fads because it is
building a widget distribution network.
"If I'm in the business of distributing widgets, I don't know which is
popular," said Navin Chaddha, managing director at Mayfield Fund. "I'm
neutral to that...We're independent of the success of any one widget."
The funding included participation from existing investors Benchmark Capital
and First Round Capital.
Gigya's widget network allows developers to spread their creations across
social networks such as Facebook and MySpace, blogs and other Web sites.
Gigya also has an advertising network that allows branded widgets to
advertise through Gigya's network.
While Gigya may at first glance appear to be a Web 2.0 play, Chaddha, who
has often invested in enterprise and infrastructure start-ups, said the
company's focus on connecting publishers and advertisers makes it appealing
as an infrastructure company.
Chaddha said online marketers are focusing more on widgets because they can
measure the metrics of individual users' interactions with widgets through
games, multimedia interaction or viral distribution to friends - something
they cannot do with banner ads.
"Brand advertisers are moving more and more from measuring CPM brand
impressions to measuring impact and individual engagement," said Chaddha,
who is joining Gigya's board.
Gigya tracks 3 billion widget impressions per month and installs "hundreds
of thousands" of widgets per day, the company said. Clients include brands
such as Kimberly-Clark Corp., Viacom Inc.'s MTV, Levi Strauss & Co., Sprint
Nextel Corp.'s Sprint and Toyota Motor Corp.
Gigya started out by offering a free distribution and tracking service for
individual widget providers, then in January launched the advertising
network, which promises the potential for big returns for the company.
"The real value proposition in widgets is the widget as ad unit," said Rooly
Eliezerov, Gigya's co-founder and president. "Place an ad on a widget and
you can place the ad on so many [Web sites]."
The interactive component of widgets and the ability for consumers to
"endorse" them is also key, Eliezerov said.
Based in Palo Alto, Calif., Gigya last May received $3 million in a Series A
round led by Benchmark Capital, with participation from First Round Capital.
Competitors in this busy space include SocialMedia Networks Inc., which
raised a $3.5 million Series A round in October led by Charles River
Ventures; Clearspring Technologies Inc., backed by Novak Biddle Venture
Partners, ZG Ventures and AOL LLC; WidgetBox Inc., which raised an $8
million Series B last month from Northgate Capital, Sequoia Capital and
Hummer Winblad Venture Partners; and Mixercast Inc., which raised $6 million
in a Series B led by Intel Capital in January.
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