Stack Overflow Injects $12 Million, Mutates Into Stack Exchange
The extremely popular questions-and-answers site, Stack Overflow, has just announced that they’ve finished a Series B funding round netting $6 million. This comes after an initial round of $6 million during May of last year.
Commentary on this round of funding comes from GigaOM, along with an explanation of what users can expect from the newly renamed Stack Exchange:
Along with the new money, the company has also changed its name to Stack Exchange Inc., which was previously the name of its network of sub-sites covering more than 40 different areas including things like English, photography and cooking. The original name came from the programming term, which was where the company began its focus: as a destination for coders. But now, the company is clearly signaling that its future is much broader than programming and that its model can work for many more areas.
The newly renamed Stack Exchange has surged because of its very ordered way of answering questions. It works by focusing on specific verticals and building up experts within those areas who can answer incoming queries. The result is an impressive answer rate of more than 80 percent overall, and in some vertical subject areas, well over 90 percent. That has translated into a lot of users. Last month, the site hit 19 million users to crack Quantcast’s list of top 300 sites.
Stack Exchange’s snowball is growing as it crashes down hill through a pile of people happy and willing to throw themselves into the fray not only as people ask questions, but because “Someone is Wrong on the Internet” a phenomena that oddly drives a lot of crowdsourced human understanding (see xkcd on this subject.) It sits at a particular crux seen as the rise of Q&A communities verses social search, which seems to be well placed to become the next-hot-thing.
Their influx of capital will aid them in taking this new market, as there’s already contenders waiting there such as Quora—who have been getting some news lately for their community’s ability to answer questions and hold onto famous experts. Knowledge Management and Q&A sites build up a stable of regulars and crowdsource knowledge in a way that’s usually only seen arising out of forums and sites like Reddit. Stack Exchange has made it as far as they have by presenting a clean, easy-to-use interface combined with strong moderation.
The key word with Stack Exchange will probably continue to be “community” as in community management. The useful exchange of ideas will depend not just on the total quality of ideas in the ecosystem; but the aggregate signal-to-noise ratio.
The money will probably also help them expand their already healthy set of verticals. As noted the community has spread from a Q&A resource for programmers into a multitude of different subjects—opening up into English language, math, photography, cooking, and more. Their continued growth will depend on making use of that money to build up their servers and give their community strong incentives to use their social currency and reputation to be noticed and answer questions.
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