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RockMelt announced yesterday it raised $30 million in a Series B funding – A considerable amount for a company creating a product which all of the competitors in the space are not making any profit from it. RockMelt’s first round of funding came in September 2009, just over a year before it released it’s product. The funding came from new investors Accel Partners and Khosla Ventures along with existing investors Andreessen Horowitz, Bill Campbell, First Round Capital and Ron Conway, and brings Accel’s Jim Breyer and Khosla of Khosla Ventures in as board observers. The new funding will be used for marketing, business development and hiring. Mountain View, Calif.-based RockMelt employs 40 people now, which is expected to double in the next year.
Rockmelt has been tagged as a “social browser,” with deep integration of social networks, services, sharing and chat, noticeably the tightest integration is with Facebook. But the company’s ambitions are broader, Andreessen — co-creator of the first Web browser — said in an interview. “When we created the browser 15 to 20 years ago we had no idea what the killer apps would be,” Andreessen said. “Had we known about these things we would have built it very differently.”
But RockMelt’s challenges are huge. First of all, its competing against other browsers, each of those browsers have a huge market share and is either backed by one of the largest companies in the tech industry or have long standing reputation and fan base. In a recent interview Khosla said the following “When a browser changes from an information retrieval tool to a social media tool it’s probably some new company that’s going to figure it out… When shifts happen I sincerely believe start-ups are the best at entering the new market.”
Facebook and RockMelt worked closely together to create a custom Facebook experience when the site is visited from the browser. As for potential competition from Facebook themselves in case they were to create their own Facebook browser, both Andreessen and Khosla shrugged it off. “These things (browsers) are not easy to do.” Khosla’s said, while Marc Andreessen added “I’m in a conflicted situation as a Facebook director so don’t want to speak on Facebook’s behalf. But as a RockMelt director, RockMelt is thrilled with our relationship with Facebook.”
For now, RockMelt has been especially embraced by the young crowd, said CEO Eric Vishria. Fifty-six percent of active RockMelt users are age 24 and under, and most of them use the browser’s chat feature which is unique to RockMelt.
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