After raising just shy of $20 million in venture funding, Hunch will now reportedly be purchased by Ebay for $80 million. Ebay will use Hunch to power its recommendations. Hunch cofounder Chris Dixon will take over the 50-person recommendations team and start a new office in New York that is expected to quadruple in size.
A big company like Ebay putting down such a sizable office in New York would be great news for Silicon Alley. The purchase prices seems like a modest win for the company’s investors.