GoldPocket Lined With $43M by VCs

Do the Rolling Stones even cost this much?

GoldPocket.com has netted $43 million in a second round of venture funding that, when combined with its Series A round in January, increases the total capital it has raised this year to more than $51 million. The second round comes just two months before GoldPocket plans to launch what it claims will be the largest-ever online entertainment event.

RRE Ventures led the most recent transaction with a $7 million investment. Additional participants included TH Lee.Putnam Internet Partners, Waterview, Allen & Co. and Nexus Group.

“We did not invest in GoldPocket as a broadcast company,” said Jim Brown, managing director with TH Lee. “We liked the technology they’ve developed because it allows them to be a facilitator of interactive online events with far more simultaneous users than have ever been together before.”

The technology itself is a widely-developed load-balancing system with multiple points-of-presence distributed throughout the country – a structure which is designed to allow Goldpocket.com to continue operation in the midst of heavy usage. The company has also secured dedicated bandwidth from the points-of-presence to a majority of the nation’s backbone Internet providers.

“Broadcasting a television event online is no big deal because it doesn’t add any value to the product itself,” said Scott Neunam, president of GoldPocket.com. “Our system is strong enough to enable true interaction on a scale that Internet users have not yet experienced.”

While specifics of the company’s launch are being held close to the vest, it is no secret that the event’s execution will be a key factor in determining the Cambridge, Mass.- based issuer’s future performance in the venture capital market. Indeed, if visitor expectations are met and the system proves able to carry the load, it is likely that the company could complete another round by the end of the year.