Madrona gives $6 million to BuddyTV

BuddyTV, the online community for television fans, has scored $6 million from Madrona Venture Group in an oversubscribed round.

BuddyTV founders David Niu and Andy Liu believe the online TV commentary service will appeal to young viewers used to multitasking while watching. The money comes after the Seattle startup turned down several buyout offers. Chief Executive Liu said they decided to invest heavily in the business because of the opportunity. They originally were looking to raise just $3 million to $4 million.

BuddyTV has been growing fast as TV viewers turn to the Web site to discuss shows such as "Lost," "American Idol" and "Big Brother."

It attracted about 4 million unique visitors last month, generating more than 25 million page views. Advertising sales are growing.

"If we wanted to be a profitable company we could do it today, but we are in investment mode right now," Liu said.

The prolonged writers strike actually helped the business as more networks aired reality programs, which Liu said typically drive more discussion among users. It also has lengthened the TV season, he said.

With the new money, BuddyTV plans to increase hiring, build out its advertising sales and possibly expand into new markets such as movies and games.

Staffing will grow from about 20 to 25 this year.

As a result of the investment, Madrona's Geoff Entress, who previously invested in the company as an angel, has joined the board.