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Flixster Raises $5 Million Of Planned $8 Million Second Round; No Sale

By Joseph Weisenthal - Fri 04 Apr 2008 08:34 AM PST

So Flixster finally decided not to sell (or, that no one was willing to pay its blue-sky valuation hopes): the movie-based social service that’s popular on Facebook, has raised $5 million of a planned $8 million second round according to peHUB. The round was led by Pinnacle Ventures, with participation from past backer Lightspeed Venture Partners, which led the company’s $2 million first round.

The service kind of resembles Netflix (NSDQ: NFLX), without the DVD rental part—just the peer recommendations. There have been on-again/off-again rumors of an IACI (NSDQ: IACI) takeover, though that’s dead, and the fresh raise confirms that. Reports had said the company was seeking $150 million or more.

Posted in: Companies, Facebook, Entertainment, Movies, Social Media, VC+M&A, Venture Capital

Tags: lightspeed venture partner, pinnacle ventures, flixster

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From Jeremy Fri 04 Apr 2008 09:03 AM

The environment has changed swiftly (from people I’ve been talking to) in Silicon Valley over the last 4-6 months…

http://www.quantcast.com/flixster.com/traffic

Take a look at flixsters traffic a sky high valuation only makes sense if it’s not dropping. And, they are quantified publishers (meaning that’s real data) not just a panel. So with dropping audience (seemingly by the truckload...) then it only makes sense buyers would drop by the way side & your next round would be lower than you’d like.

Still, they’ve done a great job builiding up the site & network. It’ll be interesting to see if the cash injection can make the traffic trend reverse itself.