A web marketing startup needs a few hundred million in VC funding to survive.
But a small startup with a niche market of small businesses might be able to get there with just $100,000 in seed money, according to a recent report.
This is a big deal for a startup like The Web Marketing Alliance (TMA), a nonprofit founded by venture capitalists including Andreessen Horowitz and Benchmark Capital that works to help startups grow and diversify.
The TMA is also a major investor in The New York Times, where they have partnered with the Times Digital Publishing Group, to bring online advertising to the Times.
The TMA recently launched a new funding round for web marketing startups with $50 million from Benchmark.TMA has launched a series of Web Marketing Fundamentals classes in partnership with Coursera, Courseras own MOOC, and is launching its own Web Marketing Academy, which is part of the Times’ TMO initiative.
The $50-million funding round represents a $40 million increase in TMA’s total funding.
But the new investment represents a huge boost in TDA’s total budget for the next three years.
According to The Wall Street Journal, TDA will spend $20 million in total, $12 million of which will go toward building a Web Marketing Accelerator in Brooklyn, New York.TDA also plans to invest in another Web Marketing Initiative that is part-funded by Courseratas investment, as well as another Web Management and Online Marketing Fund that is funded by the NYTimes.
The WSJ notes that the two Web Management Initiative funds will be funded through the TMA Foundation.
The Web Marketing Foundation has already partnered with Coursellas MOOC to bring a new online class on the topic, which will run from September to December, which includes Courserabs lessons on the fundamentals of online marketing.
The Web Management Fund will provide another $4 million in funding to the TMM to help with their efforts to educate other startups.TMM founder, Matt Breen, told The WSJ that the funding from TMA will help fund the education of other startups to create the next generation of Web marketing practitioners.
Breen said that the fund is also in the process of hiring more faculty, and hopes to increase the size of its workforce to about 150.
The startup will also expand its focus on small businesses and is hoping to hire 10 to 15 new employees.