Loomia, a San Francisco-based personal recommendation service company, raised $5 million in Series A funding from Asset Management Company and two strategic investors: Peacock Equity and Telefónica Capital S.A.U. (Point to note: Telefónica is getting pretty aggressive and is starting to invest in U.S.-based startups. The Spanish phone company also recently invested in life-casting startup Kyte.)
Loomia is one of the better recommendation services, and it is gaining a lot of traction in the e-commerce world. I have always liked the company; it’s low-key and seems to have stayed the course after rough going in the early days. However, I found that its initial focus on podcasting was too narrow. CTO and Co-founder David Marks agreed, and he outlined how he found a new model for his company in this post for FoundRead. Consumer reviews and recommendations are two categories that are becoming must-haves for e-commerce sites.
We have all seen how such services have helped boost the Amazon.com experience. It should come as no surprise that other e-commerce sites want to implement similar features. Loomia seems to be quietly marching on what seems to be the right track.
One thought on “For Loomia, A Timely $5M Investment”
I don’t see any products that they currently offer that allow ecommerce sites to add consumer reviews (I’m sure they are just in the works), but I would be interested to see how it is implemented. If they just use an iframe or widget, the content may be invisible to the search engines. The SEO benefit of having consumer-generated content on a retail site is potentially huge…
Hopefully they will consider this.