Flypaper Studio Inc., a Phoenix-based innovator of rich media content creation software, has closed $3.5 million in funding. The venture capital round comes from Sierra Ventures of Menlo Park, California, and SCF Arizona of Phoenix, Arizona. Both companies contributed to Flypaper’s first round of funding, completed in February 2008, in the total amount of $3 million.

This funding round will allow the company to expand marketing efforts, as well as develop more products and add-on features including an enterprise-focused application that includes CRM integration. The company used the first round of funding to launch two products, Flypaper and Flypaper Pro. Flypaper is a free rich media application that allows subscribers to easily create, edit and share interactive presentations and other content for live or Web-based delivery.

Flypaper was launched in beta at the exclusive DEMO 2008 Conference, held in January. The company took home a coveted “DEMOgod” award, which recognizes the top new products from the conference. The company also won the Invest Southwest Capital Conference in December 2007. In July 2008, the company launched Flypaper Pro and announced the general availability of Flypaper.

“We’ve watched the tremendous market response to this company and their products over the last six months and are thrilled to continue investing with Flypaper,” commented David Schwab, managing director at Sierra Ventures. “Flypaper provides the communication applications that businesses need to really sell their story in this Web 2.0 world. The market response to Flypaper’s first two products tells us this company will continue to thrive.”

Flypaper allows users to produce high-impact presentations and immediately published to any Web site - including YouTube, Facebook and others.

Slideshow of Photographs Showing Three Display Methods