Buzz Article:
Latest Deal Terms for Hunch, Inc.

by Justin Byers, Business Intelligence Analyst, 5/27/2010

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Looking for a recommendation? There is a new site providing personalized recommendations that is getting a lot of attention and even more venture capital. The company is Hunch, Inc. and this week we are going to take a look at the terms and valuation of its latest round of financing.

Hunch, Inc. (originally incorporated as DGP Labs, Inc.) is headquartered in New York, New York. The company provides a recommendation site that uses a question selection algorithm to try to arrive at the best possible recommendation for the users particular topic. The company recently took in an additional amount of funding, bringing in $12 MM in March 2010. Participating in this round were Khosla Ventures, General Catalyst Partners, and Bessemer Venture Partners. The Deal Terms for this round were:

• Filing Date: 03/12/2010
• Liquidation Preference: Pari Passu
• Round of Financing: Series B Preferred^*
• Round Direction: UP
• Multiple of the Liquidation Preference: 1x
• Type of Preferred Stock: Conventional Convertible
• Anti-Dilution Protection: Weighted Average
• Redemption at Investor's Option: No
• Pay-to-Play Provisions: No
• Cumulative Dividends: No
• Dividend Rate: 8%
• Price Per Share: $1.7566
• Total Amount Raised in Current Round: $12 MM
• Post-Money Valuation: Subscribe Today!

^* Noted as Series C in the VC Experts Valuation and Deal Terms Database, due to there is a prior Series A and Series A-1 authorized.

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