Dot Com Winners and Losers: MP3.com and Ask Jeeves
By Jenny Baker, December 11, 2000

Dot-Com Winners & Losers
by Jenny Baker

December 7, 2000

In the Winner Circle:
Viva.com

Those of you who live in tight rental markets will be thoroughly
perplexed by the notion of rental agencies paying a company to help them
find tenants. Those of you who've kept an eye on recent dot-com
vicissitudes will be further surprised by the news that just such a
company (B2C, no less) has scored $17.3 million in the current market.
However, this is indeed the case with Santa Monica, Calif.-based
Viva.com. The company offers a free service to potential renters who
enter their profile on the Viva site and then receive rental offers from
local real-estate companies. When Viva's matchmaker attempts are
successful, the company then collects between 20 and 32 percent of the
first month's rent from the property owner. Sounds like a crazy
proposition, but investors (including a host of realty companies and
some financial organizations) believed in it enough to pledge the
aforementioned $17.3 million to support Viva's existing operations in 13
markets and its plans for expansion into another 30 or so. A note to
denizens of New York, San Francisco, and Los Angeles: Don't expect to
see a Viva.com web site opening soon in a location near you.

B2C Viva.com receives $17.3 million in 3rd round funding
http://www.redherring.com/vc/2000/1207/vc-ltr-dealflow120700.html


In the Digital Doghouse:
Women.com

Back on Monday, we told you about Oxygen Media scoring a staggering $100
million in funding. However, not all is so swell in the world of women's
web sites this week, as evidenced by Wednesday's announcement that one
of Oxygen's main competitors in the women's niche, Women.com, is laying
off 25 percent of its staff, or 85 employees. Dubbed a cost-cutting
move, the company hopes its reduced costs and streamlined operations
will allow it to see profitability at some point in 2001. No plans to
curtail services have been announced, so Women.com's 200,000 pages of
community bulletins, health tips, relationship advice, shopping sites,
and the like should be unaffected by the cuts. Still, tough times are
ahead for the site, and its niche as well -- even Oxygen announced
layoffs of 65 staff members after its whopping investment haul. Kind of
lends a new meaning to the "women's lib" movement.

Women.com lays off 25 percent in cost-cutting move
http://news.cnet.com/news/0-1005-200-4028462.html

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