RealTime IT News

Flooz.Com Receives $16.5 Million Investment

Online gift service Flooz.com Inc. said it has received a first round of venture capital financing valued at $16.5 million.

The investment round was led by Oak Investment Partners and also included Brentwood Venture Capital, Maveron Equity Partners and Venture Strategy Partners LP.

Jim Manzi, an investor in Internet-related businesses who is the former chairman and chief executive officer of Lotus Development Corp., has also invested in the company and has joined the company's board of directors.

Flooz.com said it will use the funding to expand its marketing activities in order to reach more consumers and to accelerate the development of its service, including enhancement of its navigation and search capabilities, and its personalized tools for buying, sending and receiving electronic gifts of "Flooz."

Flooz.com facilitates gift-giving online by partnering with a variety of online merchants that have agreed to accept Flooz, an online gift currency, as payment for goods available on their sites.

Users can e-mail a gift of Flooz in any amount, accompanied by a personalized electronic greeting card. Recipients can spend the Flooz at partner online retailers.

"Flooz.com has the right answer to gift-giving and shopping on the Web -- fast, frictionless and fun," said Annie Lamont, a partner of Oak Investment Partners.

"The founders have created novel functionality that is ahead of anything on the Internet, but more importantly, they have created a unique and compelling experience for both the giver and the receiver."