SpinVox is a service that converts voice mail into text messages through their Voice Message Conversion System around 2005.  The company is based in Buckinghamshire, Great Britain.  The company raised over $200 million from GLG Partners, Goldman Sachs, Toscafund Asset Management, and Blue Mountain Capital Management over the last couple years.

However the company is now facing litigation from creditors over hundreds of thousands of pounds.  One of SpinVox’s technology partners almost decided to cut them off over an unpaid £100,000 bill.  SpinVox also owes money to several other suppliers who are threatening to sue the company.

SpinVox was founded by Christina Domecq and Daniel Doulton.  One of SpinVox’s suppliers filed three county court claims against the company because they were owed £200,000.

“Existing investors from the last round of funding have made available more funds to allow the company to continue its growth,” stated a SpinVox spokesperson in an interview with paidContent.  It is highly likely that the cash will be used up quickly to take care of existing debt.

[via ThisIsMoney]

Last week, the FBI arrested Sergey Aleynikov, a former VP at Goldman Sachs.  Aleynikov uploaded secret algorithms used by Goldman Sachs that run automated stock and commodities trading.  The data was uploaded to a server in Europe. Shortly after the deed was done, Aleynikov resigned from his $400,000 per year job at Goldman.

Unfortunately the code has leaked on to the Internet and could do some damage to the stock market.  “The bank has raised the possibility that there is a danger that somebody who knew how to use this program could use it to manipulate markets in unfair ways,” stated U.S. Attorney Joseph Facciponti. “The copy in Germany is still out there, and we at this time do not know who else has access to it.”

Aleynikov is being held on a $750,000 bail as of right now and he told FBI officials that he only intended to download open source files from the server but ended up downloading more than he had intended.

When Aleynikov posted his resignation, he was intending to join Teza Technologies LLC.  Aleynikov became an employee of Teza on July 2nd  and then was arrested on July 3rd.  Teza stated that they learned about the arrest on July 5th and suspend Aleyniko’s employment without pay pending an investigation.

Goldman uses algorithms and a high frequency trading platform software to buy stock within a few milliseconds of company news being released and then selling a few moments later when other financial companies receive the company news.

At the beginning of June, Aleynikov ran scripts using a bash shell to copy and compress a large amount of source code.  After the compression , he sent it to the servers through a secure server protocol to a server in Germany.  He sent about 32MB in ASCII code about four times.

Aleynikov tried to have his script erase the bash history, but Goldman keeps a backup of everyone’s bash history.  This is how he was caught.  Aleynikov is now waiting for his trial. Perhaps while Sergey is waiting on his trial, he may be thinking of new ballroom dancing moves.

[via Ars Technica/Bloomberg]

One of YouTube’s most critical flaws when the company first started was that the video quality was inferior.  This is where companies such as Joost and Veoh wanted to hit YouTube where it counted.  Both Joost and Veoh had higher quality videos than YouTube, but they lacked in quantity.  Last week Joost decided to focus on video platforms for companies rather than making deals with companies to stream their content.

Now Veoh is reportedly giving up on being a streaming video start-up company.  AllThingsD is reporting that the company is looking for a buyer for a price that is below the $70 million in funding that they have raised over the last four years.  The $30 million Series D round of funding took place back in June 2008.

Some of the previous investors include former Disney CEO Michael Eisner and Goldman Sachs.  The company has not been profitable and last year alone they lost about $6 million. Veoh is also facing litigation from Universal Music Group which is accusing them of copyright vilations.

Currently there is no word on who a potential buyer may be, but considering how much traffic Veoh is receiving I would not be surprised if an acquisition takes place in the near future.

AOL co-founder Steve Case has come a long way since his days as running the dial-up giant. Case was started in 2007 as a payment network. Revolution Money is based in St. Petersburg, Florida. Today the company announced a $42 million round of funding. The Series C round was led by Goldman Sachs. Other investors that participated included Steve Case, Citigroup, Morgan Stanley, former AOL Vice Chairman Ted Leonsis, former Charles Schwab CEO David Pottruck, and JP Morgan Chairman David Golden.

The company previously raised $50 million Series B in September 2007. Thus far Revolution Money raised $92 million.

The idea behind Revolution Money is to lower credit card charges and other payment transfers. Merchants are charged an 0.5% transaction fee.

“It’s a vote of confidence from the insiders and we were able to bring in this affiliate of Goldman [a new investor],” stated Leonsis. “It’s such a big opportunity and big play. There hasn’t been a new entrant since PayPal, which was about a dozen years ago.”

Revolution Money’s two products are called RevolutionCard and RevolutionMoneyExchange. RevolutionCard is a credit card that charges the 0.5% per transaction which is compared to the 1.5% to 4% fee normally charged to traditional companies.

Revolution MoneyExchange is a P2P payment system that allows users to exchange money for free. MoneyExchange has about 400,000 registered users since the service started.

[via WSJ]

Apparently SAP, Goldman Sachs, Bessemer Venture Partners, and McGraw Hill believe that relationships DO matter.  Or at least back in June they did.  The four companies invested $22.7 million on top of the $53 million LinkedIn received this past June.  The total $75.7 million Series D investment is based on a $1 billion valuation.   

To date, LinkedIn has raised over $100 million for their professional social network service.  LinkedIn has about 370 employees and their revenues are growing 100% per year.  LinkedIn CEO Dan Nye informed TechCrunch that the company has been profitable since 2006.  

LinkedIn has about 30 million registered users.  LinkedIn receives over 4 million uniques per month.  The previous investors of the $53 million were Bain Capital Ventures, Sequoia Capital, Greylock Partners and Bessemer Venture Partners.

Demand Media Inc. is a Santa Monica, Calif. based company that was founded by Richard Rosenblatt. Roseblatt was the former President of Intermix Media, parent company of MySpace. News Corp.’s Fox Interactive Media became the part company of MySpace when they acquired Intermix.

The company has raised a 3rd round of funding at $100 million by investment banking company, Goldman-Sachs. The previous investors include 3i Group, Generation Partners, Oak Investment Partners, and Spectrum Equity Partners [Source: alarm:clock]. Demand Media has raised a total of $320 million as of now.

So what does Demand Media actually do?

(more…)

Veoh is a video content website that serves home videos and internet TV content. As of earlier, the third round of funding was tentative, but has been finalized today. The investors that are plugging $25 million into Veoh includes Tom Freston (former CEO of Viacom), Goldman Sachs Group Inc. (NYSE:GS), Spark Capital, Shelter Capital Partners, Time Warner Investments, Michael Eisner’s The Tornante Company, Jonathan Dolgen (former Chairman/CEO of Viacom), and Ziffrin law firm.

In June, Veoh launched VeohTV, a special video browser and with DVR technology that has a patent-pending smart recommendation engine embedded in the service. The address for VeohTV is www.veoh.tv.

Steve Mitgang recently started as Veoh’s CEO. Mitgang came to Veoh from Yahoo!, where he served as the SVP of Yahoo!’s global team where he helped manage the Panama project. When Yahoo! bought Overture, a web analytics company, it also acquired Keylime Software, where Mitgang was CEO.

References:
[1] paidContent.org: Eisner-Backed Video Site Veoh Raises $25 Million; Tom Freston Invests