Update: RockYou is in the middle of fundraising talks with Partech International, a person involved in the deal says. The deal has not closed.
Iconix, the company that sued two of its former employees for walking off with proprietary software they later used to found RockYou, now counts itself as a beneficial owner of the startup and as a participant in RockYou’s $4.4 million Series A investment round after settling with the company out of court in November.
The ownership stake in the was part of the lawsuit settlement says Iconix CFO Bob Zager. He would not comment on what percentage of the round Iconix owned, citing confidentiality as terms of the settlement. “The good news is the litigation is behind us,” he says.
Iconix, which makes software designed to help protect consumers from email scams, raised $1 million from angel investors in November 2005. It has not yet raised money from VCs and has not received investment dollars from the backers RockYou, Zager says. “Part of the issue is that we’re at the low end of the revenue curve and we don’t need to be talking to VCs if we can avoid it,” he says.
TechCrunch reports that RockYou may have raised a $11 million investment round at a $50 million valuation from Partech International. PEHub.com has requested comment from the startup’s Series A investors.