Japanese version of CoComment December 22, 2006Posted by fukumimi in blogosphere, Internet, Japan, VC.
A:CEuro notes that CoComment has raised $1.5M from Netage Capital Partners, the Japanese VC which was one of the main investors in Mixi. $1.5M for a 40% stage seems very reasonable (heh, understatement) to me. I doubt you could drive such a bargain with a Japanese IT start-up these days.
(The value proposition here is that CoComment takes (at least a proportion of) pageviews away from the site that the comment was originally posted on, by scraping the content from the marked threads, and diverts eyeballs to the CoComment site which then can be monetized. Basically a blogosphere impression hijacking engine :-))
Netage launched a Japanese version of CoComment at the end of November (although much of the site is still unlocalised, which might hinder users). It is part of Netage’s Saaf portal which gets nil points for originality, featuring Digg and del.icio.us feature ripoffs. (even in Japan there were companies like Hatena doing most of what Netage is doing here a long time ago)
The CoComment investment will probably be matched to the Trend Match advertising engine (or some other ad engine) to monetize pageviews I guess.
I’ve been using CoComment for a while and find it handy to track comments, especially if you are a Firefox user.
However, it will be interesting to see how the blogosphere dynamic evolves, NRI published a report on the state of the blogosphere in Japan (article here in Japanese) where they pointed out that of approx 10Million bloggers in Japan, only about 10% actively comment or trackback. I don’t think that there will be much change in the proportion of bloggers who actively link and comment, but I guess that such bloggers do spend much more time on their PCs, which may be a plus for advertisers. However, at the same time my gut feeling is that the more PC-centric a person’s lifestyle is, the less they actually click through CPC ad links. I certainly don’t click on many ads at all….