Zvents, which is seeking to transform the events category to a broader “what, when and where” category that encompasses local entertainment, organizations and businesses, has announced $24 million in new funding from AT&T (i.e. wireless and Yellow Pages), Nokia Growth Capital and NAVTEQ.
The funding is on top of $7.2 million previously raised from Vantage Point Venture Partners and Red Rock Ventures, both of which are also participating in the new round. A third early funder, Net Services Inc., isn’t participating in the new round.
The massive funding for a company pulling in $220,000 per month suggests a major bet by the companies. The bet is in several things swirling in-and-around the events category, but not yet mastered by Zvents (or rival Eventful, for that matter).
These include taking a lead role in mobile searches for events, which is a top use for mobile phones; selling ads to the likes of Home Depot and REI for Promotion-based events; the development of an ad network that would allow Zvents to place media from one partner site to another; and the ability to fully leverage Zvents network of 250 plus local sites, focused largely on many key newspapers.
All this is very ambitious. But the move of a hefty portion of events-oriented search to mobile is going to be real, especially with the increased presence of the smart phones. Advertising-wise, it makes more sense for some categories than others. The Dinosaur Show at the Milwaukee Arena that is coming to Chicago makes sense. But isn’t it a little off center to think that Home Depot’s caulking workshops translates into a high CPM advertising opportunity? That’s going to take major new thinking at the agencies.
Our interpretation is that buried somewhere in this is a strong vote of confidence in local mobile as a targeted ad platform; the globalization of search; and in the compelling vision of Zvents Founder Ethan Stock. It isn’t a sure thing, but we like where it is going.