ChaCha: Maybe NOW You’ll Get Some Questions

Posted by ChrisMonty on January 26th 2009

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ChaCha, the answers service where users 'text in' their questions and real humans text the answers back to them, is raising about $30 million in new venture capital. Of that $30 million, $11 million has already been secured according to a regulatory filing, reports peHUB.

They previously raised $6 million in financing about 2 years ago, followed by a $10 million round by Morton Meyerson and 21st Century Technology Fund. If ChaCha gets the $30 million, the total funds invested into the company will be an astounding $46 million.

We've written about ChaCha quite a bit here over the past few months. The biggest challenge they face is that, a few months ago when their were "high volume alerts" practically every day, they instituted a 'cap' on the number of questions a user could ask per month.

This resulted in many of the 'guides' not getting nearly the level of traffic that they were getting before, which means they were earning a LOT less.

Hopefully, this new round of capital will offer them ways to solve some of these problems and get back on the ball.