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August 21, 2009
SkyBlox Leverages Twitter for Funding, a Startup First
By Vivek Naik, TMCnet Contributor
SkyBlox reportedly has announced it has become the first startup ever to leverage Twitter’s micro-blogging social networking platform to successfully get an undisclosed amount of funding from an investor, SGIO LLC, which is a private equity investment firm specializing in early stage technology focused startups.
Officials at the company claimed that DLA Piper, a law firm with global presence and more than 3,700 lawyers, advised SkyBlox on the transaction, and officials claimed SkyBlox used Twitpay, another Atlanta based startup, to facilitate a portion of the investment. SkyBlox claimed that it was started in early 2008 by members of the former EarthLink Wi-Fi team and it soon became the largest provider of Wi-Fi in Atlanta with additional operations in Austin, Chicago and Denver.
Officials claim their company manages a ‘first of its kind’ mobile platform that allows local businesses to communicate with their mobile customers in real time.
“SkyBlox's concept of combining wireless and local content has proven to be an innovative model. Using Twitter for this transaction is just another example of their creative approach," said Lance Weatherby, a startup catalyst for Advanced Technology Development Center.
This strategy of leveraging a social media platform to land funding is in sync with the growing consumer trend which indicates that a high percentage of people turn to social networks to communicate, recommend and seek advice for all sorts of stuff. There are specific Webspaces that leverage social networking recommendations for the hospitality industry, the travel industry, shopping industry, parent-teacher-student study sync up, company marketing strategy, and for pubs.
"We've been using Wi-Fi for the past year to make our mark on the local online space,” said Dave Payne, founder and chief executive officer for CEO. “This investment allows SkyBlox to build an even more powerful platform to capitalize on the growth of mobile devices and create a sustainable local online business model."
Follow ITEXPO (News - Alert) on Twitter: twitter.com/itexpo
Vivek Naik is a contributing editor for TMCnet. To read more of Vivek's articles, please visit his columnist page.
Edited by Tim Gray
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