San Francisco-based ad-supported image-licensing platform PicApp has secured $3.2 million in a funding round led by Israeli venture-capital firm Carmel Ventures. The PicScout spin-off, which recently became a separate business venture, has also announced a technological update of its product and a new content partner.
With over $600 under management, Carmel focuses on early-stage software, communications and media businesses. The company is headquartered in Herzelia, the birth place of PicScout and location of its a development and operations center. Carmel general partner Rina Shainski is joining the PicApp board of directors, along with angel investors Yair Goldfinger and Lenny Recanati.
PicApp has also released a non-Flash version of the embeddable widget that allows bloggers and Web site owners to use images hosted by the company. The update integrates better search-engine optimization capabilities.
Shainski described PicApp’s progress as impressive. Without releasing specifics, the company says it has gained much traction with bloggers, such as members of the sports-blogging network Yardbarker. The network, which targets men and unites over 550 blogs, has recently selected PicApp as premiere photo source.
PicApp was also selected as one of the top 100 undiscovered sites by PCMagazine. The company currently represents over 10 million images from leading stock and editorial sources, including Getty Images, Corbis, Splash News and Image Source.
The latest to join the PicApp supplier roster is Newscom, an aggregator that offers publisher-clients over 25 million images, video clips, illustrations, texts and graphics. According to PicApp, Newscom content offers PicApp users the benefit of real-time coverage of sports, news and entertainment events.
PicApp remains in beta.