Nearly four years after Apple Computer launched its iTunes Music Store (which has since sold more than 1 billion downloaded songs), startups are looking for their own iPod effect.
Mog.com is certainly an example. The startup offers users social networking around the music they listen to and offers advertisers the chance to target an audience with certain known preferences.
The company, based in Emeryville, Calif., raised $500,000 from the Angels’ Forum, Finnat Fiduciaria, Great Idea Enterprises and Sequoia-backed startup Gracenote, according to a regulatory filing. The startup collected $1.6 million in seed money in March 2006 from many of the same investors.
The investment by Gracenote, which provides a music recognition, content delivery and database management software, may seem strange. Gracenote is still a small private company itself. It has received nearly $50 million in financing from Sequoia Capital and Bessemer Venture Partners since its 1995 inception. The link, other than the obvious musical-application connection, is that Mog was founded by former Gracenote CEO David Hyman.