Swaptree, a web-based swap meet for books, CDs, DVDs and video games, has nabbed $6 million in fresh venture funding. The news comes at a time of expansion for the company, which has also just named Jeff Bennett as its new CEO.
Based in Boston, the relatively simple site allows its users to list the items they're looking for and items they're willing to trade to facilitate easy matches and trades. You can even import your whole Amazon wish list into your Swaptree profile, or add items directly from Amazon via a Swaptree plug-in (a plug-in that also tells you whether any item you are viewing on Amazon is available on Swaptree).
By and large, the company has been very innovative in its approach to this business, taking advantage of many of the Web 2.0 tools you wouldn't expect a site focused on older forms of media to be using. As far back as 2007, Swaptree had already launched a Facebook application allowing users' friends to view what they want to trade or find without ever leaving the social network.
The startup has also taken its trading process one step beyond what most of its competitors -- sites like Neighborrow, BarterBee, Peerflix and PaperbackSwap -- are offering. The algorithm it uses to match up trades also looks several degrees past direct swaps, alerting users that they might be able to get what they want by having someone trade with someone else first. While all trades on the site are one-to-one, you can swap across categories: a DVD for a CD perhaps.
Instead of leaving the sending of items up to users, Swaptree allows you to print out accurately-priced shipping labels, and you get the bill for all your shipping needs at the end of every month.
Two years ago, when the company first launched its Facebook presence, there was some question as to whether Swaptree would be able to build up enough of a reputation to survive in an eBay-dominated world. But the new $6 million raised seems to be an affirmative answer to that question.
In addition to adding Bennett -- a founder and former president and COO of domain name marketplace NameMedia -- Swaptree will use its new capital to make several key hires and beef up its marketing operations.
The company previously raised $5.6 million over three rounds of funding from Safeguard Scientifics, among others -- which also led the recent round.