CyanogenMod completes $23m funding round

CyanogenMod completes $23m funding round

Summary: Venture capital firm Andreessen Horowitz and Chinese tech juggernaut Tencent have stumped up $23 million of Series B fund raising for the Android-based mobile operating system.

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CyanogenMod, the company behind the eponymous alternative open-source Android distribution that is based on the official releases of Android, has closed a round of Series B financing with venture capital firm Andreessen Horowitz (a16z) and Chinese internet giant Tencent.

Writing on the CyanogenMod blog, co-founder Steve Kondik said that the funding would go towards keeping the lights on, new services, and having more devices run the Android alternative out of the box.

The company's CEO Kirt McMaster told the LA Times that the $23 million round would be put towards hiring up to 60 more staff members over the next year.

The company currently has 25 staff, and as part of the funding, Peter Levine of a16z would join the board.

"Software is eating the world, Android is eating mobile, and we think Cyanogen only just finished their appetiser and is moving onto the entree," Levine said in a blog post.

"One reason why Android is winning is due to that open-source spirit of additive innovation. Because consumers are clamouring for increased personalisation and customisation options, the Android open-source community has been happily taking up the task of fulfilling that demand."

CyanogenMod's total funding now sits at $30 million after earlier receiving $7 million of series A funding from Benchmark Capital and Redpoint Ventures in September.

CyanogenMod recently added an app to the Google Play Store that decreased the complexity of the sometimes arduous procedure to install alternative firmware; however, it only lasted a fortnight before being removed after CyanogenMod was given an ultimatum to remove the app from Google.

Tencent said in October that it had invested over $2 billion in overseas markets, and is responsible for the popular WeChat messaging app.

Topics: Mobility, Android, Start-Ups

About

Chris started his journalistic adventure in 2006 as the Editor of Builder AU after originally joining CBS as a programmer. After a Canadian sojourn, he returned in 2011 as the Editor of TechRepublic Australia, and is now the Australian Editor of ZDNet.

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4 comments
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  • An Android branch gets monetized to the tune of $23 million

    Microsoft, who's your daddy?
    Tim Jordan
  • An Android branch gets monitized

    Microsoft, who's your daddy?
    Tim Jordan
    • did you use an Android phone to post twice?

      Go figure: inefficient and buggy
      hubivedder
  • What is their business model?

    So currently CyanogenMod gives away their work. What exactly is their business plan? Ads built into the OS firmware?
    Ele Truk