Echo Networks Rings Up $5 Million in Strategic Investment
(Nov. 10, 2000) Echo Networks, the largest and fastest growing interactive streaming music community, has closed financing to the tune of $5 million, the company announced today.
The capital comes from eBay co-founder, Jeff Skoll; former president of Disney's Hollywood Records, Peter Paterno; and founder and CEO of Wish.com, Michael Mo. Also participating were private equity investment groups Revolution Ventures LLC and Fundamental Capital, and a broad base of other angel and institutional investors.
"Our financing success in today's difficult market is a strong validation of our unique approach to delivering music -- as an experience and not just a file," said Daniel Hart, the company's co-founder and CEO. "Investors like Jeff (Skoll, eBay's co-founder) recognize the power of Echo's viral community streaming model to grow audience quickly and the value of Echo's Groupcast technology across a wide range of Internet media delivery applications."
Hart is the founder and former managing partner of a well-known early- stage venture capital partnership, where he was responsible for co-founding and managing a string of successful high technology companies, including Silicon Spice, a developer of gateway and carrier access chipsets that recently sold to Broadcom for $1.2 billion.
"Our strong momentum on all fronts reflects a growing recognition that Echo has developed among the most compelling streaming music services on the Web," added Executive Vice President of Strategic Development, Tuhin Roy.
Echo Networks, Inc., which introduced its beta service in June 2000, is rapidly growing its audience by enabling members to create online communities where listeners hear a simultaneous stream of music that directly reflects the members' aggregated song ratings. Through a web-based player that requires no download, Echo listeners rate music, instant message other members of their listening communities, vote on the songs playing, and invite others to join their group stations. Echo's breakthrough Groupcast(TM) technology serves synchronous music streams to community members regardless of network conditions, processing speed and bandwidth. Echo's SongSelection(TM) technology intelligently delivers music that is programmed in real-time to reflect the song ratings of group members. Together, these proprietary technologies leverage the benefits of streaming music to give listeners the simplicity of radio, the emotional impact of group listening and a feeling of total ownership of the listening experience.
Echo Networks is based in San Francisco and has offices in New York. The company competes with MP3.com, Napster, Musicbank, MTVi, Launch.com, Infinity Broadcasting and AM/FM Clear Channel.
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