New funding to allow us to make Goodreads even better

Posted by Otis Chandler on December 10, 2009
We are announcing a new round of funding today (though the cat got out of the bag yesterday)! This is a very exciting moment for Goodreads, as it means we can really go after our goal of getting people excited about reading.

We've already made a few changes, planning out and buying faster servers to make the site faster. The next step is to add a few talented people to our team.

Lots more good stuff to come!

Otis



ps. Here is the press release:

Goodreads raises a new round of funding as they are becoming a major player in the online book space

LOS ANGELES AND SAN FRANCISCO, Dec. 8 – Goodreads Inc. announced today that the company raised a Series A round of venture capital financing of close to $2 million dollars. Led by True Ventures, a respected early-stage investor with deep domain experience in consumer Internet technology, the new funding will enable the company to expand the services and features of its rapidly growing social network for readers. With more than 2.8 million registered users, Goodreads.com is poised to be a leader in the emerging online book industry.

Unique to Goodreads is the confluence of skills that the company member’s bring to the table. Founder and CEO Otis Chandler leads with a strong social network background, working at Tickle.com before it was bought by Monster Inc. in 2004. At Tickle, Chandler trained with founder James Currier and CTO Stan Chudnovsky, current co-founders of Ooga Labs, and Michael Birch, founder of Bebo (the 3rd largest social network in the world). All are advisers to Goodreads, as is the CTO of MySpace, Mike Jones. Co-founder Elizabeth Chandler brings a news and media background to the team as a former writer and editor at the Los Angeles Times. The company currently has a staff of seven.

Jon Callaghan, partner and founder of True Ventures, added "We’re thrilled to become more involved with Otis and the team at Goodreads. The company is the clear market leader in the book (new term) social networking market, and they are developing a tremendously rich group of book lovers across the world. The new capital will allow the company to expand dramatically in a number of important product and market directions".

A social network for members of all ages
Goodreads members are more diverse than the average social network and the site works as a cross-generational method for readers of all ages to communicate. The millennial generation is also a huge sector on the social network site. This generation uses the site to interact and socialize, learn and role-play through reading and trivia. Fifty percent of Goodreads members are older than thirty, forty percent are in their twenties, and seventy percent are female.

Goodreads – Helping authors reach readers
The book publishing industry, like many other traditional media industries, continues to undergo massive change as it interacts with the Internet. Goodreads has become a platform for authors to reach a massive audience of readers. Over 9,000 published and self-published authors have signed up for an author profile, from which they can promote their new titles by collecting fans and friends, writing blog posts, adding their favorite books, and responding to comments and messages from readers. Goodreads works with most major publishing houses to launch additional promotions, such as advance book giveaways and advertising campaigns. Goodreads offers advertisers the unique ability to target readers by what they have actually read, and also allows budgets of any size in its new self-serve advertising product.

The additional funds from True Ventures will allow Goodreads to improve the site and create more features around reading: better support for authors, additional fun features like trivia and quizzes, bookswap, and ebook support features—all elements that users on Goodreads are clamoring for.

Founder Otis Chandler says, "We’re very happy to have funding from True Ventures. The team there really believes in us and in our mission to get people excited about reading. The future of the online book industry is very interesting right now, and major changes are happening in the way books are being published, promoted, and even sold. Goodreads is already helping in some of those areas–-like our Author Program--but we are only at the beginning of what we can do."

Rapid, Exponential Growth at Goodreads
Goodreads membership continues to grow rapidly and exponentially, reaching 2.8 million within three years of operation. More impressive are the stats relating to unique visitors, pageviews, and time spent on Goodreads.com. According to Google Analytics, Goodreads achieved 6 million unique visitors and 30 million pageviews in September 09, with members spending 25 million minutes on the site.

About Goodreads
Goodreads is the largest social network for readers in the world. More than 2.8 million members have added more than 74 million books to their profiles. A place for casual readers and bona-fide bookworms alike, Goodreads members recommend books, compare what they are reading, keep track of what they've read and would like to read, form book clubs, answer trivia, and much more. Goodreads was launched in December 2006.

About True Ventures
True Ventures invests in promising entrepreneurs at the earliest stages in the highest-growth segments of the technology market. The partners at True have started over ten companies as founders, and True is designed by entrepreneurs for entrepreneurs. The firm clearly understands both opportunities and challenges in the earliest stage of development and provides young companies with a powerful, seasoned partner. True’s entrepreneur-centric approach and willingness to invest small amounts early, combined with the fire power of two funds totaling $360 million under management, provide companies with at winning combination.

Comments Showing 1-11 of 11 (11 new)

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message 1: by Cindy (new)

Cindy Congratulations! Goodreads has completely changed the way I read. It's no longer such a solitary adventure!


message 2: by Mollie (new)

Mollie Congratulations indeed! Can we have a Goodreads iPhone app now? :)


message 3: by Alethea (new)

Alethea A Awesome news! Congratulations :)


message 4: by Bex (new)

Bex yay! congrats! glad to know goodreads is here to STAY!


message 5: by Jackie (new)

Jackie FANTASTIC!!!!!


message 6: by Kate (new)

Kate One of my favorite things just got better! Yeah for you!


message 7: by Martha (new)

Martha Congratulations! Goodreads is an amazing accomplishment for such a small (but obviously talented and dedicated!) staff.


message 8: by Petra-X (new)

Petra-X This is really excellent news. I read about it on a book blog before I saw it here!

I would like to suggest a small blogging area in profile which could be updated regularly. I like reading blogs, especially book ones (but also general ones), and to me its the only thing that Goodreads lacks for an all-round book and social-networking site.


message 9: by Terri (new)

Terri Contrags Team ! Keep up a good work and make this site go strong ever.


message 10: by Strangerealms (new)

Strangerealms I'm happy for you guys that you're so popular and getting funds to make the place better. I hope an amount will be used to translate the website in other languages to reach more people on an international level. Way to go!


message 11: by Terri (new)

Terri my thumbs up for you guys. Contrags!


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