Foodbuzz Acquired by Federated Media
 

Borealis Ventures is pleased to share that Federated Media has announced its acquisition of Borealis portfolio company Foodbuzz.  Although the terms of the transaction will not be disclosed, it presents an attractive return for Borealis and Foodbuzz's angel investors.  Congratulations to Foodbuzz founder Ben Dehan and his team on this affirmation of the hard work done to achieve this important milestone for their business.

Borealis was introduced to FoodBuzz by a Borealis supporter and existing angel investor in the company.  We were intrigued by the opportunity to support a savvy entrepreneur in one of a handful Digital Media markets that we had identified where consumer interest was ramping rapidly but online advertising spend was lagging, similar to what we had seen in the beauty category through Daily Makeover.  Foodbuzz was aggressively aggregating ad inventory in a fragmented market and tying disparate publishers together, creating economies of scale for big brands looking to reach an influential audience.

In the 30 months since Borealis' initial investment, Foodbuzz has become the largest online food community and the fastest growing food property on the web, reaching 14 million people each month.  Foodbuzz has created exclusive partnerships with more than 4,400 food bloggers and provides a social media platform for users around the world to interact and share their food experiences. The company also works with hundreds of leading brands to provide a comprehensive, award-winning engagement platform featuring contextual display advertising, content sponsorships and blogger outreach.

Federated Media is a leading online media company focused on delivering the best ad solutions and engagement with a scaled audience to the world's leading brands.  Its network of websites attracts more than 85 million visitors monthly at leading sites across the content spectrum (technology, parenting, green living, etc). 

After attracting strategic interest from multiple potential media partners over the past year, Foodbuzz agreed to partner with Federated to reach more big ad spenders sooner.  Foodbuzz (and food advertisers) will benefit directly from the scale that Federated has already achieved. Federated's ad trafficking, measurement, and reporting systems are robust and will facilitate a higher level of service to both publishers and advertisers. Federated's  ad sales capabilities are mature, with more than 20 sales professionals in key ad markets, and we expect that Foodbuzz's business will continue to grow rapidly.

Working actively with exceptional entrepreneurs to create great companies is Borealis' core value.  It's been a real pleasure to have done so with Ben and the Foodbuzz team.  We wish them continued success as part of Federated Media!