Filed under: Raising money, Investments
The internet probably doesn’t need another online pic site, but ScanCafe Inc. isn’t your typical on the internet digital pic service a la Eastman Kodak Co.’s (NYSE: EK) KodakGallery and Shutterfly Inc. (NASDAQ: SFLY). As its name implies, ScanCafe provides pic scanning and restoration services. The Burlingame, Calif.-based company announced on Tuesday it has received $5.5 million in Series B funding in a round led by Sigma Partners. The company is using $1.5 million of that money to pay off debt, while also adding employees, investing in new technology and expanding its global reach.
ScanCafe grants people to mail in pics slides and negatives, then restores and organizes all images and provides customers with access to a secure on the internet library to view, select and share the images. They’re only required to pay for the images they keep, though with a 50% minimum commitment. All selected images are then burned to a DVD or CD and shipped back to the customer with the originals.
Digging a little deeper, this review of the service from News.com reveals that one of the ways ScanCafe is keeping costs of its service down is by outsourcing the scanning work to India, so anyone worried about sending precious photos halfway around the world (that’s an estimate) will have to give some thought to using the service.
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