Flypaper Studio Raises Second Round

Flypaper Studio Inc., a Phoenix-based maker of rich media creation software, has raised $3.5 million in second-round funding. Return backers include Sierra Ventures and SCF Arizona.

PRESS RELEASE

Flypaper Studio, Inc., an innovator of rich media content creation software, today announces the company has closed $3.5 million in funding. The venture capital round comes from Sierra Ventures of Menlo Park, California, and SCF Arizona of Phoenix, Arizona. Both companies contributed to Flypaper Studios' first round of funding, completed in February 2008, in the total amount of $3 million.

The company used the first round of funding to launch two products, Flypaper and Flypaper Pro. Flypaper is a free rich media application that allows subscribers to easily create, edit and share interactive presentations and other content for live or Web-based delivery. Flypaper Pro is an advanced business solution that allows subscribers to track viewer statistics and capture data, host content on any Web site, and add animated, professionally designed elements. Flypaper Pro is available as a yearly subscription of $195 per year. This next funding round will allow the company to expand marketing efforts, as well as develop more products and add-on features including an enterprise-focused application that includes CRM integration.

We've watched the tremendous market response to this company and their products over the last six months and are thrilled to continue investing with Flypaper, commented David Schwab, managing director at Sierra Ventures. Flypaper provides the communication applications that businesses need to really sell their story in this Web 2.0 world. The market response to Flypaper's first two products tells us this company will continue to thrive.

Duane Miller, chief business development officer for SCF Arizona, goes on to say, “Flypaper Studio took the market by storm last year when they presented their flagship product at the prestigious DEMO conference and Invest Southwest, winning awards at both. Highly innovative companies with a winning management team do come out of places other than Silicon Valley, and Flypaper is the perfect example.”

Flypaper was launched in beta at the exclusive DEMO 2008 Conference, held in January. The company took home a coveted DEMOgod award, which recognizes the top new products from the conference. The company also won the Invest Southwest Capital Conference in December 2007. In July 2008, the company launched Flypaper Pro and announced the general availability of Flypaper.

Flypaper brings a seasoned team of executives in the software industry, including veteran software entrepreneur Pat Sullivan as chief executive officer. Sullivan's background includes starting and leading many successful software companies such as ACT!