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Bzz agent funding

BzzAgent, the Boston-based company that organize common people to talk about, and endorse,  products and services has recieved new funding of  $13.75 million.

"With exceptional leadership, an impressive client base and history of rapid growth, BzzAgent is well-positioned to become a category-defining company that will dramatically change the way companies market to consumers," John Simon, managing director at General Catalyst Partners, one of the investors commented in their joint press release.

I congratulate BzzAgent, which I really agree have been successful to define the catogory, but in the same time I just ask my self: for what good will this money be used? Like other communication ventures the value lies in the ideas they are creating for their customers. To a certain point. Values also are to be found in the network of agents they have recruited. But people are not payed if they are out of assignment so the costs are rather low. Expansion to new cities an recruiting new agents perhaps may increase the demand for cash. But isn't that what a well known brand would do for you already, I mean, can it really be more difficult now then when they were starting the business?

Sure, $13,75 million is not astronomic, and perhaps the current owners perhaps got their fair share. But if the company is so successful and run an operation that cost very little. Shouldn't the cash come from another pipe?

 

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