Report: Path closes $40M Series B round led by Redpoint Ventures


Path, the mobile social networking startup headed by Facebook alum Dave Morin, has closed a Series B financing round totaling $40 million. Sources told AllThingsD that Redpoint Ventures led the round, which values Path at $250 million.

Launched as an alternative to Facebook, where Morin helped developed Facebook Platform and Facebook Connect, Path limits social networks to 150 contacts, a move to guarantee users are interacting solely with the people closest to them. Recent updates have refocused the Path user experience on personal journaling, complete with tools to share travel updates, workout progress and other updates.

Morin said in February that Path now boasts more than 2 million registered users across Apple's (NASDAQ:AAPL) iOS and Google's (NASDAQ:GOOG) Android. Last month, he announced the company is expanding its app to Microsoft's (NASDAQ:MSFT) Windows Phone operating system, but he did not specify a timetable for its release. Morin admitted Path is not planning to devote a huge amount of resources to porting the app to Windows Phone because about 80 percent of its users are iPhone owners, and the firm devotes about 80 percent of its development resources to its iOS version.

Path also made headlines earlier this year for uploading user address books to its servers without explicit consent. Developer Arun Thampi first discovered the issue while observing various API calls made to Path's servers from its iPhone app: "Upon inspecting closer, I noticed that my entire address book (including full names, emails and phone numbers) was being sent as a plist to Path," Thampi wrote on his blog.

Path later apologized to its users and said it will allow them to opt out of its contacts database. "Over the last couple of days users brought to light an issue concerning how we handle your personal information on Path, specifically the transmission and storage of your phone contacts," Morin wrote on the Path blog. "Through the feedback we've received from all of you, we now understand that the way we had designed our 'Add Friends' feature was wrong...We've deleted the entire collection of user uploaded contact information from our servers. Your trust matters to us, and we want you to feel completely in control of your information on Path."

In the wake of the Path furor, Apple announced it would upgrade its iOS platform so that developers can only access users' contact data after receiving explicit permission to do so.

For more:
- read this AllThingsD article

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