URL Shortening Service Bit.ly Raises $2 Million
Bit.ly has been growing rapidly with the help of Twitter. People are constantly using Bit.ly to shorten URLs of stories, images, and videos that people want to share with their Twitter followers. Bit.ly was created under Betaworks, an incubation firm that helped sell Summize to Twitter last year. Betaworks has taken Bit.ly and is spinning it out as a separate, well-funded company.
O’Reilly AlphaTech Ventures and several other investors plugged $2 million into the URL shortening service. Other investors include Social Leverage, SoftTech VC, and Ron Conway. Bryce Roberts of O’Reilly will join the Board of Directors at Bit.ly.
Just last week alone, about 20 million URLs have been shortened using Bit.ly. That number is increasing by 10% every week. The only source of revenue Bit.ly has is Google Ads that are scattered around their homepage. This is a similar approach to their biggest competitor TinyURL.com. TinyURL depends mainly on donations and Google Ads too.