Updated: ChaCha Raises $10 Million Second Round for ‘Human-Powered Search’

Updated to reflect a change in the information provided by the company: Indianapolis-based ChaCha, a search startup that offers users the ability to search with the help of a human guide, has raised a big $10 million second round led by Morton Meyerson, a former executive at Perot Systems and EDS. Meyerson and returning investors Jeff Bezos (through his private fund), Rod Canion (founding CEO of Compaq), and investor Jack Gill, contributed $8 million to the round, with the rest coming via a $2 million grant from Indiana’s 21st Century Technology Fund. Earlier this year the company raised $6 million from Bezos, Canion and Gill. Correcting information provided by the company’s PR firm earlier today, ChaCha President Brad Bostic said the previous investors were willing to fund the entire round themselves, but the company wanted to bring in Meyerson, who was the largest participant in this round.
The basic search engine consists of results delivered by InfoSpace’s (NSDQ: INSP) metasearch technology, though it also offers the ability to communicate with a live human guide while searching. The company says the investment will fuel the development of new services, including a ‘mobile answers’ application, to be released next year. Release.
There’s been some controversy surrounding the site and its ties to Indiana University, which has been written about extensively by Valleywag.