![]() There are clearly different niches in the business. Still, many investors consider this company to be in the adware market. Rather, they say it's an information provider supported by multiple sources of revenue. Illustrating the sensitivity around the word "adware," company investors and executives insist that Weatherbug isn't a purveyor of advertising software. Weatherbug also recently secured $23 million in financing from Sequoia Capital, which is a backer of Google, and others. ![]() , one of Claria's closest rivals, has also been exploring financial options, having hired an investment bank in recent months to secure financing or strategic partnerships. Earlier this year, adware maker 180 Solutions raised nearly $40 million from Spectrum Equity Ventures. Investors are drawn to the financials in the business. He compared the ad-supported software business to the early days of the Web and the uproar over cookies, programs used by Web sites to keep tabs on visitors and remember user names and passwords. "The Internet application industry is still defining itself." ![]() "Right now for desktop applications, people are still wondering, what does this do?" Jedynak said. We as an industry can't afford to not make it a reality because of a few bad people," said Andy Jedynak, a senior vice president at Weatherbug, which distributes real-time weather information in an application bundled with a search toolbar from Ask Jeeves' MyWay. "Desktop software that connects to the Net is a powerful tool-it uses a lot less bandwidth. In some sense, the early practices of adware makers made a bed that many in the business don't want to lie in now. ![]() Wienbar and her partners have looked closely at investing in the adware business in recent months.Īdware has notoriously frustrated consumers, and its distributors have long been criticized for failing to disclose terms, installing applications onto consumers' PCs without permission, and attempting to control features and change browser settings. "There's been a lot of question in the venture world-should a company like (Claria) be public? When your main distribution partner is Kazaa, how do you feel about that?" said Sharon Wienbar, director at BA Venture Partners, the venture arm for Bank of America. Despite great strides to legitimize the industry, with mainstream advertisers and investors showing support, adware has maintained an air of the taboo. But the delay also comes as the adware business is having growing pains, according to many investors. The holdup could reflect a softening market for Internet stocks: This week alone, MatchNet, PlanetOut and Nanosys postponed their IPOs. ![]()
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