Free-PC Inc, the idealab! startup that will offer a Compaq Presario internet PC free of charge as long as the user allows targeted advertising messages to be delivered directly onto the desktop, said it has secured more than $33m in its first major round of financing. Investors included USA Networks Inc, The Goldman Sachs Group LP, idealab! Capital Partners, and Moore Capital Management.
The company says it will use the cash for general business development purposes and for working capital. It is slated to ship its first 10,000 machines with free internet access and email next month. Ads will appear onscreen on a side and bottom bar, regardless of whether or not the user is online. Free-PC claims it has already signed deals with a number of advertisers, including Amazon.com Inc, Beyond.com Inc, Citibank, eBay Inc, Investors Business Daily, Preview Travel Inc and Volvo.
