Phanfare receives $2.5 mn but can they remain competitive in the photo sharing market

 

 

Phanfare, a photo sharing website has received $2.5 million in additional funding. The funding was led by Azure Capital Partners.

Phanfare charges users a monthly fee for a service allowing you to store your photos — and videos — in an application on your desktop, that then syncs the content to the Web automatically.  You photos are then available wherever you go.  The monthly charge is $6.95.

 

 

As the graph above shows, the site has gained traction, but is still not profitable.  This is a cause for concern, especially given the high number of ad supported online photo websites. 

Given this funding we can expect to see some changes at Phanfare, most likely to be the business model.  While theya re unlikely to stop the subscription service, they will have to add some clever features to stay competitive in this market.

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