Peter Chun

Social music service MyStrands has completed the second half of their B round, raising an additional $24 million from Spanish Bank BBVA on top of the $25 million we reported earlier. BBVA is a financial services group with more than $782 billion in total assets, 42 million customers in 40 countries and a market capitalization of approximately $95 billion. This brings total financing for the Corvallis, OR based startup to $55 million, significantly more than $5 million raised by London-based Last.fm which started around the same time (later sold for $280 million). MyStands core products are a music recommendation engine for discovering songs you love on your computer, mobile, and even playing them in bars you frequent. They recently launched a music video product that puts a more pleasant face on YouTube’s music video archives. They’ve made over $12 million in sales from these products during 2007. Even with revenues pacing nicely, $24 million is a lot of capital and its not clear they really need it. The company says the money will go towards expanding their recommendation engine beyond music, although they’re not saying how quite yet. The most MyStrand’s VP of Communications Gabriel Aldamiz-Echevarria will say is that “…the general idea is to keep building technologies that will help people discover different products and services.” Well, now they have quite a war chest to pursue that goal.

 

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Google’s Streetview was celebrated at launch, but caught some flack when they were captured the public in some embarrassing situations.

Google’s hoping to avoid similar issues when they complete their launch overseas. According to Google’s senior privacy council, Google will begin altering photos to make sure that faces and license plate numbers aren’t recognizable. The move’s more aggressive than how unflattering photos or personal information are being handled in the U.S., where users have to write in for image take downs. But if it’s embarrassing enough, chances are it’s already been plastered all over the internet.

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U.K.-based peer to peer lending startup Zopa is gearing up for their U.S. launch. Reports of the launch have been circulating for some time (WSJ), but now it seems only days away. The service will be available at us.zopa.com, but is currently under password protection.

Zopa’s peer to peer lending service differs from U.S. rivals by working with credit unions to offer person-to-person loans instead of a loans coming directly from lenders on the service like Prosper and Lending Club (works through Facebook). GlobalFunder.com is a yet-to-launch competitor. With Zopa, lenders will place their money in Zopa branded CDs that are then loaned out online. Borrowers apply for loans through their online community by posting their case for the loan and filling out relevant details about their credit risk. Interest rates on five year loans can range from 8.75% to 16.99%, depending on their credit risk.

It’s worth noting that Zopa’s investor, Benchmark also invested in Prosper. The lending market is anticipated to be very large. According to the research firm Online Banking Report, around $100 million in new P2P loans will be issued this year, mostly by Prosper, with new loans growing to as much as $1 billion in 2010 and $9 billion in 2017. Prosper already registered an S-1 with the SEC and reported $96.4 million in loans.

Adding further details to the launch, Allen Stern received an email outlining some differences between the U.S. and U.K. (which TCUK covered) versions. The key differences listed are:

• No risk for investors.
  Your funds will be federally insured. No more worrying about whether your borrowers will pay your loan back.
• Pick who you want to help.
  Investors will choose exactly who they want to help.
• Set your rate.
  Investors will choose how much they want to earn, up to a ceiling.
• No waiting.
  Borrowers will get their loans immediately upon approval.
• Lower your monthly payment.
  Borrowers can actually reduce their loan payments after they’ve borrowed. They’ll do that using rich profiles…

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