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Del.icio.us Receives Under $5M 1st Round To Develop Its Bookmarking Tool

By Marine Cole

4/12/2005

Del.icio.us, an online social bookmarking company, said it has received its first round of institutional financing, which closed in the past few weeks.

Joshua Schachter, founder and chief executive of del.icio.us, declined to disclose the amount raised, but he said it is less than $5 million.

Union Square Ventures led the round, while BV Capital and Amazon.com Inc. also invested. Individual investors included Marc Andreessen, co-founder of Netscape Communications Corp.; and Esther Dyson, president and co-founder of EDventure Holdings, now part of CNET Networks Inc.

Schachter, who started the del.icio.us Web site in mid 2003 and incorporated the company in March 2005, is now devoting himself full time to his venture. Proceeds from the new round will be used to hire new employees - developers mainly - and to purchase additional servers. Schachter is currently the sole employee in the company.