SOURCE: Peanut Labs

February 19, 2008 07:58 ET

Peanut Labs Secures $3.2 Million Series A Funding Round to Expand Development and Support Growth

Company Announces Profitability and Seven-Figure Revenues; Top-Tier Venture Capital Firms Leapfrog Ventures and BV Capital Back Peanut Labs' Growth

SAN FRANCISCO, CA--(Marketwire - February 19, 2008) - Peanut Labs, provider of the largest Gen-Y sample for market research, today announced that it received $3.2 million in a series A financing round. The funding is led by top-tier venture capital firms Leapfrog Ventures and BV Capital.

The financing comes as Peanut Labs also announces company profitability and seven-figure revenues for fiscal year 2007 that have shown 20 percent month-over-month revenue growth. Peanut Labs expects eight figure revenues in 2008.

The $3.2 million cash infusion will be used for continued product development towards Peanut Labs' patent pending market research sampling technology, which is highly effective at reaching the sought after 13- to 25-year-old demographic known as Gen-Y. The funding will also be used to actively service Peanut Labs' burgeoning list of market research clients and enhance the survey-taking experience, a crucial part of Peanut Labs' Sample3.0 technology.

"With surveys from the gaming, consumer products, entertainment, automotive and cellular industries, the demand for our uninhibited access to this taste-making demographic is exploding. This round of funding will allow us to expand service to our active list of premier market research clients to give them the highest quality sample," said Murtaza Hussain, chief executive officer and co-founder of Peanut Labs. "We feel our business model proves that social networks have alternative ways to maintain profitability that yield revenue increases up to five times higher than with ineffective, ad-based models."

Found across more than seventy social networks, Peanut Labs helps web publishers create revenue streams through market research surveys. Each time a member of the social network completes a survey, the publisher earns a sum of money.

"Partnering with Peanut Labs has proven to be a most profitable way to monetize our Facebook applications," said Josh Liptzin, CEO of Phase 2, Inc., a Peanut Labs publisher. "There has been much talk surrounding the effectiveness of advertising as a means of revenue, but there is no question that Peanut Labs' market research surveys are an excellent source of income and appealing to our users to enhance their overall experience."

About Peanut Labs

Peanut Labs is changing the way online market research is accessed and delivered, providing unparalleled access to millions of 13-25 year olds that comprise today's Gen-Y audience. Developer of Sample3.0, the Peanut Labs sample methodology taps into more than 70 social networks including MySpace, Facebook, and Google OpenSocial. Sample3.0 is quickly becoming the online sampling methodology of choice by leading marketing research firms. More information about Peanut Labs and Sample3.0 can be found at www.peanutlabs.com.