Millions of dollars for shorter links

So much for the recession –, a URL shortening service, has raised $2 million in funding. TechCrunch did the math (back of the napkin, natch) and figures that is worth about $8 million, while its more well-known competitor TinyURL is worth at least $46 million. Who knew there could be so much money in building a simple service to shorten really long web addresses and perform automatic redirects?

I used to be a TinyURL user, but switched a few months ago to in order to get better analytics about the links I post to Twitter. These services are really a dime a dozen, however. I’m pretty amazed that investors would sink that much money into

Here’s what Peter Kafka wrote about the deal today:

So where’s the money? is free to users, and the company says it doesn’t plan on selling its analytics or other tools to publishers. Team says revenue will come sometime down the road, from something else–when they figure out what that is.

This is great news for, obviously. And for me it means that my favorite URL shortener will be around for a while. Beyond that, I’m not sure what to think. Do the investors see a buy-out in the future, or do they really think will be able to generate revenue at some point?

It also makes me wonder what kind of service will get some investor love next. A simple copy-paste service? TwitPic?

  • Scott Winder

    simple copy-paste got 5m in funding.

  • Mack D. Male

    I guess I was thinking more along the lines of

  • Francois

    Such a simple but useful idea that really has capitalized on the twitter explosion, good for them.

    It certainly will be interesting to see in a year what does to start monetizing their popularity.