Formspring Planning New Expansion to Compete With Facebook and Twitter

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Formspring Planning New Expansion to Compete
With Facebook and Twitter
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Popular social QA website Formspring has
announced a new capital infusion of 11.5
million from its leading investor Redpoint
Ventures.
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In addition, the company is planning to
implement a new publisher feature designed to
further grow its audience a Respond button
that allows publishers to pose questions on
their website and in turn, allows visitors to
post responses to said questions.
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Once answered, the question responses can be
transmitted to social media sites like Twitter
and Facebook (not unlike normal Formspring
answers) with the key difference being that the
links generated will direct traffic not to a
Formspring page but rather to the publishers
own website.
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By essentially using Formsprings QA format as
a traffic generator, publishers can tap into
the companys registered user base which
currently stands at 20 million.
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Moreover, many of those users appear to be
active participants as evidenced by the surge
in answered questions from 1 billion last
September to now roughly topping 2 billion. So
not only will publishers be able to tap into a
vast quantity of potential visitors, but
engaged, quality ones as well.
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Getting back to funding, besides the 11.5
million from Redpoint, Formspring has raised
additional capital from Baseline Ventures and
various other individual investors to bring
their grand total to 14 million. Plans for the
new funds have not been disclosed yet but there
have been hints that it would be advertising
based.
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