Yupi Internet Taps Network for $13M

Seeking to be the first mover in Spanish language Internet content, Yupi Internet Inc. of Miami Beach, Fla., raised $13 million last month in its first round of venture financing.

Interprise Technology Partners of Miami led the round with a $10 million commitment. The balance of the capital came from IFX Corp., a strategic investor that is in the midst of a consolidation play of Latin American Internet service providers.

“The hurdle to growth [in Latin America] is the lack of original content in Spanish,” said IFX Chief Executive Joel Edelstein. “So we felt that the original content was strategic in adding to the service.”

Yupi has developed a network of sites that target Latin American Internet users, a group that is becoming increasingly prominent, said Yupi’s president, Oscar Coen. The company operates 12 channels on the Internet, each of which holds numerous sites within. Coen said the company additionally offers regional and news services, the content of which comes from worldwide services.

“It is a way for these users to stay connected to their homeland,” Coen said. “They can see all the news pertaining to their country as well as regional channels that can be customized.”

Yupi intends to spend its new money primarily on research and development. Particular attention will be paid to create new hardware as well as to add scalability features to its architecture. Coen said Yupi expected to launch the first phase of the new architecture, which was developed in conjunction with Exodus Communications, this week.

Additional proceeds will be used to hire new staff, particularly in the sales, programming and editorial areas, Coen said.

The company has no immediate plans for future private equity placements, as Coen said this round could cover operations until an initial public offering.