Mainstream Holdings Inc., a West Palm Beach, Fla.-based social media startup formed by former E*Trade CEO Christos Cotsakos, has raised $29.6 million in VC funding. Backers include Home Depot co-founders Bernard Marcus and Kenneth Langone, and Vantis Capital Management's Steven Holzman.
Mainstream Holdings, Inc., an Internet technology and digital media company, announced today it entered into an agreement with private investors to receive $29.6 million of funding for the Company. The funding will be used to accelerate the international expansion and enrich membership development programs of its subsidiary MOLI. MOLI will be launched today at the DEMO 08 conference.
The group of investors includes a number of experienced business executives and Wall Street entrepreneurs known for working with companies to build quality businesses. Three of the investors will join Mainstream's Board of Directors:
– Bernard Marcus, founder of HomeDepot – Kenneth G. Langone, co-founder of HomeDepot – Steven D. Holzman, Managing Member Vantis Capital Management, LLC
“Dr. Cotsakos has been very insightful and disciplined about how to build and organize a digital media company in today's fast-moving Web 2.0 environment,” said Marcus, one of the private investors and new Mainstream board member. “The investment group is very impressed with the team; its patent pending technology; the business model and product offering; and we are very excited about helping the Company build its brand and market position.”
Founded by Dr. Cotsakos, Mainstream focuses on four industry segments: e-commerce, behavioral marketing, high-definition video production, and software and infrastructure development. MOLI is its core operating subsidiary. The founder provided $20 million of early stage capital and a select group of private investors provided an additional $6 million in equity.
“We are privileged to have these distinguished business veterans join our board,” said Dr. Cotsakos. “They will help us navigate our future and introduce us to a wide variety of business associates that will contribute to the international growth of the company.”
MOLI — Creating A New Standard for Controlling Individual Privacy Online
“MOLI is a next-generation social media community allowing members to manage multiple profiles from one account. It is designed for enterprising individuals entering that next major lifestyle change, beginning in the late twenties, when control over personal privacy is a more compelling issue,” said Judy Balint, president and COO of MOLI. “MOLI is a diverse, sophisticated site where professionally produced content coupled with interactive e-commerce features enable members to connect and conduct business with other discerning individuals, groups and businesses in the U.S., the U.K., and Ireland, along with other international sites planned for 2008.”
Dr. Cotsakos began developing the architecture and business model for Mainstream in 2003 after leaving his position as Chairman and CEO of E*TRADE Group, Inc. From 2003 until the present, Dr. Cotsakos also provided technology and management advisory services and strategic capital to a select group of businesses through his private management company, Pennington Ventures. He has also continued his involvement with a variety of philanthropic projects such as:
— Project Renew, Quang Tri Province, Vietnam: The project focuses on unexploded ordinance removal, landmine awareness and education as well as victim's assistance to provide sustainable employment and incomes. The project benefits include upgrading the medical systems through provisional first aid, medical equipment, supplies and training of local healthcare workers. The project goal is to reduce the risk of the more than 350,000 tons of unexploded ordnance left from the war, located in the central Vietnam in areas where farmers work and children play. http://www.landmines.org.vn/ — Vietnam Veterans Education Center – Working together with General Colin Powell, the former Secretary of State, and a distinguished group of business executives Dr. Cotsakos is leading the Vietnam Veterans Memorial Fund's National Campaign to raise $75 million to build the educational center in Washington, DC. http://www.vvmf.org/ — William Paterson University, one of the nine State Colleges and Universities in New Jersey – Dr. Cotsakos chaired the national campaign that raised over $40 million for the University. Dr. Cotsakos is an active alumni and patron. The business school was named The Christos M. Cotsakos College of Business in 2001. http://www.wpunj.edu/
Mainstream has three main operating subsidiaries in addition to MOLI: CoVibe TECH, Tertiary Productions and MOLI Kids.
– CoVibe TECH provides the underlying patent pending technology platform that powers MOLI and can be licensed to other business for a private- label social media solution. – Tertiary Productions provides original, high-definition video content for MOLI third-parties and video syndication. – MOLI Kids is an online destination under development for children ages five and older. About Mainstream Holdings, Inc.
Mainstream is an Internet technology and digital media company focusing on four industry segments: e-commerce, behavioral marketing, high-definition video production, and software and infrastructure development. The company has four main operating companies: MOLI LLC, CoVibe TECH LLC, Tertiary Productions, LLC and MOLI Kids, LLC. The company's global headquarters is located in West Palm Beach, Florida. The International headquarters is located in Dublin, Ireland and Asia-Pacific headquarters is located in Singapore. Mainstream employs approximately 55 associates worldwide.
About MOLI LLC
MOLI is a next-generation social networking site where members can manage multiple profiles in one account. Members can separate their social, business and family relationships and keep control over their privacy. Targeted at both enterprising individuals above the age of 18 and small business owners, MOLI provides an easy to use, content-rich, multimedia interactive platform ideal for both community collaboration and e-commerce. MOLI sites are currently located in the U.S. (http://www.moli.com/), the U.K. (http://www.uk.moli.com/) and Ireland (http://www.ie.moli.com/).