DuckDuckGo, a privacy-focused search alternative to Google, is looking to put its money into privacy-focused startups.
The company says it is actively seeking startups that want to invest or are interested in partnerships or acquisitions. In a blog post today, the company named Mike Marino, SVP of Finance, and Diana Chiu, Director of Corporate and Business Development, as points of contact for those interested.
DuckDuckGo writes:
“For early stage investments, we are flexible with deal structures, aim to move quickly and are happy to co-invest with other companies, funds and individuals. For acquisitions, we are open to a variety of companies that share our commitment to user privacy.”
Founded in 2008, DuckDuckGo is the brainchild of CEO Gabriel Weinberg (pictured), who personally funded the company for its first three years before receiving its first infusion of external cash in 2011. Meanwhile, DuckDuckGo has raised about $180 million in external investment. It was backed by backers including Tiger Global, Union Square Ventures, and individuals such as WhatsApp co-founder Brian Acton and web inventor Sir Tim Berners-Lee.
DuckDuckGo, which has been profitable since 2014 and says it will generate more than $100 million in annual revenue starting at least 2021, is positioning itself as the antithesis of Google, which generates revenue through advertising based solely on keyword searches rather than user data. We also make money through “non-tracking” affiliate partnerships like Amazon and eBay. Recently, they have expanded their search even further by offering subscription bundles that include features like VPN.
personal money
DuckDuckGo has historically donated to privacy-focused nonprofits, including the Electronic Frontier Foundation (EFF), Signal Foundation, and The Markup, but has quietly been taking a more capitalist approach to how it supports organizations that align with its own goals. I’m drunk. . Last month, the company participated in a $50 million funding round for generative AI search company You.com, with high-profile backers such as Nvidia and Salesforce Ventures.
DuckDuckGo’s newly launched Privacy Pro bundle also includes a privacy removal service. This service scans data broker sites to find personal data and requests its removal on your behalf. As things go, the service was powered by a startup called Removaly, which DuckDuckGo quietly acquired in 2022.
A DuckDuckGo spokesperson told TechCrunch that the company has invested in six startups over the past three years, but only named them: You.com, Removaly and a hitherto unknown AI model training platform called EverArt.
While consumer privacy technologies will be a big focus of the investment, DuckDuckGo said it will also invest in companies focused on “emerging technologies” such as “search and navigation” and generative AI. In fact, its recent investment in You.com checks all those boxes, as You.com offers a “zero-trace” private browsing mode that it claims is “much more private than DuckDuckGo.”
So while DuckDuckGo is already dabbling in the VC and M&A space, it’s now doubling down on those efforts by actively soliciting contacts from suitable startups.
Like other companies with investment spin-offs, from giants like Google to smaller tech companies like Twilio and Workday, DuckDuckGo plans to invest through its balance sheet. Profitability and annual revenue are important here. However, given that it is still a relatively small private company on its own, it is unlikely to participate in a mega-dollar pre-IPO funding round. It’s all about early stage investing.
“This is the first time we have spoken directly about the investment and its overall strategy,” the spokesperson said. “With this announcement, we wanted to formalize this work that has been going on behind the scenes for some time and send a signal to startups, potential partners, and the larger tech community that our doors are open to anyone who wants to work with us. A more private internet.”
