Yammer Digests US$ 5 Million in Funding

Many folks have claimed that 2009 will see the rise of Enterprise 2.0. That is, through the application of social media technologies (a.k.a web 2.0), we will see a drastic change in the way enterprises conduct business. Take micro-blogging, for example; the Twitter-style messages that inform your friends what you're up to or working on.

To this end, the micro-messaging service Yammer recently announced they've raised US$ 5 million in series A financing. The popular workplace micro-messaging service has been adopted by companies and groups that need a hosted, simple-to-use micro-messaging platform.

Meet The New Investors

The new venture capital raised by Yammer is from two firms: Charles River Ventures and the Founder Fund. The Founders Fund, interestingly enough, was created by two ex-PayPal employees. In fact, Yammer CEO David Sacks was Paypal's former COO.

The Founders Fund is a US$ 220 million seed fund whose partners are mostly former execs from PayPal.

The Rise of Micro-Messaging

Twitter is a very popular micromessaging (also called microblogging) service that enables you to update your friends with current events in your life. What started out as an update service has quickly evolved into a sort of chat room with your Twitter contacts.

The folks behind Yammer saw micromessaging rise in popularity and decided to adapt the platform for the workplace. With Yammer, a group of co-workers, who are filtered by the Yammer service based on their e-mail address, can discuss work-related matters in a group-chat type environment.

Rather than asking "What are your doing?" like Twitter, Yammer prompts it's users by asking "What are you working on?".

Twitter, with it's huge user base, could steal Yammer's thunder in the enterprise micro-messaging field by merely adding groups. This would allow groups of co-workers or a project team to filter out their Twitter messages as needed.

Using Yammer

We use Yammer in-house here at CMSWire.com, and it is an enabler of our work and business operations. With Yammer, a group of co-workers can have an enriched conversation that just can't occur over e-mail because of e-mail's interrupted nature of online chats, and the conversational nature of online chats on Yammer.

Interacting with Yammer is quite easy. Users can send and receive messages either through the Yammer site, through instant messaging with Google Chat, through an Adobe AIR application, an iPhone application or via a Blackberry application.

Congratulations to the Yammer team on the new funding. It will be interesting to see how the funding is used and how the business is grown from this point on.