LogoWorks Scores Venture Funding

Congratulations to the folks at LogoWorks who have received $9.3 million in venture funding from Benchmark Capital (one of the very best VC firms I know of) and Shasta Ventures–both based in Silicon Valley.

(If you want a ton of insights into Benchmark, read eBoys, an amazing insider view of the “six tall men who backed eBay and other billion-dollar startups.” It’s a great read.)

LogoWorks has one of the best internet business models I have ever
seen. (A large pool of freelance designers work when they want to;
clients request logo design; multiple logo designs are submitted; the
client chooses the one they like best; winning designer gets paid most,
but all get paid something; over time, poor designers get weeded out.
This is all nicely automated.) They are doing some very clever marketing,
have been hiring great people, are profitable, and have the ability to
take their business model into many different vertical markets, beyond
just logo design.

It’s very exciting to have another Utah company with such tremendous growth prospects.

5 Comments

  1. If the Ugliest Logo Contest was creative, then datelance.com is absolutely brilliant. Every Mormon in the Mountain West (and most across the country) have probably emailed that link to each other by now.

  2. Well let’s not sing their praises TOO soon.

    There have been concerns raised with respect to a growing pool of professional designers who have found their logos on the LogoWorks, which have allegedly been sold to other clients by LogoWorks.

    To be honest, it looks pretty fishy. I have chronicled some of the growing list of suspicious similarities on my blog:
    http://www.thepreparedmind.com/pm/index.php/2005/08/19/more-logoworks-greatest-rips/

    I have also written LogoWorks for comment. I hope they will come forward and comment on this issue because it really doesn’t pass the smell test.

    Chris

  3. Alex -S-

    Oh no – not another blog singing the praises of LOGOTHIEFS.

    Like i said in postings on other blogs – expect more negative comments after this article!

    Not so much the lowballing of designers (Although that is n issue in itself!) Its the BLATANT THEFT of existing copyrighted material.

    you can bet if someone ripped off Son’ys logo theyd be sued in no time. That said – it’s time for some serious action against LOGOTHEFT

    Adios!

  4. “It’s very exciting to have another Utah company with such tremendous growth prospects.”

    It sure would be, if they weren’t nicking logos left right and centre.

    Yes, I’m a professional designer as well – but I don’t actuall have a problem with any agency using the “bad design at low cost” model (hell, the worse they are, the better I look, right?). What I do have a problem with is unethical companies ripping off other designers and their own clients – and marketing professionals, who ought to know better, falling over themselves to sing the praises of these companies.

    How about doing a little research on the subject before giving your endorsement to companies like these?

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