RealTime IT News

Instant Messaging Firm Raises $10.6 Million

ActiveBuddy Inc. Tuesday reported it has raised $10.6 million in two rounds of financing. Both rounds were led by Wit SoundView Ventures, a venture capital unit of Wit SoundView Group Inc., and Reuters, the global news service.

"We are focused on funding early-stage companies that build innovative services and technologies," said Andy Weissman, managing director of Wit SoundView Ventures and a member of ActiveBuddy Inc.'s board of directors. "We believe the technology and management team of ActiveBuddy will revolutionize the way information is accessed on the Internet. In this increasingly competitive business, ActiveBuddy is already ahead of the game."

ActiveBuddy Inc., which develops programming for the Instant Messaging platform, secured a seed round of $4.25 million led by Wit SoundView Ventures' Dawntreader Fund II in April 2000, during round one.

During the second round of funding, the company raised an additional $2 million from Wit SoundView Ventures. Reuters also contributed to this round with an investment of $4 million. Further, Reuters has agreed in principle to a strategic content distribution relationship with ActiveBuddy.

ActiveBuddy provides Internet users with instant gratification, according to Peter Levitan, chief executive officer of ActiveBuddy Inc.

"We are focused on taking the Internet to a faster, more efficient and convenient level with Instant Messaging as the platform," he said. We are thrilled that Wit SoundView Ventures and Reuters recognize the significance of our work and have joined us in this endeavor."