Startups to watch

It's getting crowded on the Web 2.0 frontier, but there are still some startups that truly stand out. Business 2.0 Magazine identifies the ones most likely to strike gold in 2007.

Launched in 2002 by three 20-somethings in a Calgary, Alberta, apartment, StumbleUpon now has 2 million registered users drawn by its knack for finding websites that match their interests and those of others with similar tastes as they "stumble" around the Net.

Co-founder Garrett Camp (shown right), who totes around a mid-'80s Nikon F3 (yes, with actual film), came up with the idea as he was working on a master's in software engineering.

Frustrated as he tried to indulge his hobby online - "There wasn't a good way to find the best photo sites," Camp says - he tapped his own background in clustering technology. With coding help from Justin LaFrance and Geoff Smith, he created an early version of StumbleUpon. Having nailed the photo problem, the team quickly saw how the technology could click with all sorts of media.

In the same way that it matches users with like-minded websites, StumbleUpon's technology also pairs online ads with targeted demographics and interests. Now StumbleUpon is attempting to do the same for online video and video advertising. In December the startup launched StumbleVideo, a service that offers the closest thing to channelsurfing that you'll find on the Web.

Tell us what you think about StumbleUpon's model: Is it the next MySpace?

Funding: $1.5 million (Ron Conway, Mitch Kapor, Josh Kopelman, Brad O'Neill, Ram Shriram)

Headquarters: San Francisco

Employees: 12

Founded: 2001

Business model: Advertising, subscriptions

Bragging rights: Cash flow positive

Next up: New features like content controls and mobile video recommendations

Contact: Partners@stumbleupon.com

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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2014 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2014. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2014 and/or its affiliates.