Digital Goods Platform Gets First Round of Funding

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The fast growing acceptance of online consumers to pay for digital goods like music, sounds or PDF documents helps to take the next step and get an initial round of funding.

In late 2004 the website started out as a small shop for digital goods, hosting a few hundred e-books and sound effects. A tiny site and basically a one-man show. By acquiring massive amounts of content and strategic partnerships the once tiny site is now a giant of digital online distribution.

With an average of 250,000 downloads daily from all over the world, the offer is now too big to be handled by the founder Ralf Schwoebel, a german entrepreneur and search engine marketeer, alone. In the first half of 2006 the US platform generated more than 700,000 US$ in revenue, more than twice than the whole year 2005.

Last week Mr. Schwoebel signed a contract to form a new corporation with a financial partner, who funds the new company with an undisclosed 6-figure amount in cash and additional business intelligence to optimize the handling and support for the over 6,000 active merchants of the site.

The new company Tradebit AG will hold 100% of the american company Tradebit Inc., the founder still holds the majority of shares in the new entity and will be CEO in both companies.


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