Klout
Defunct9 known investors
Application that measures and ranks its users according to online social influence by using social media analytics
Also known as Klout Score
Investors · 9
Also in the syndicate · 5
Company profile
researched Aug 2026Klout was a San Francisco-based company that measured influence across the social web. Its core technology analyzed social network user data — users could connect Facebook and Twitter accounts — and identified influential individuals based on the impact of their opinions, links, recommendations and other online content, condensing this into a single "Klout Score" on a 1-to-100 scale. The service also ranked users' influence on specific topics and offered guidance on increasing influence within those topics.
The company distributed its data through several channels: the Klout.com consumer destination site, a Klout API that as of January 2011 powered more than 1,000 companies, and tools that let brands including Disney, Audi and Fox interact with and interpret influencer data. Brands used the platform to target influential people on the web, and Klout ran a "Klout Perks" program in which high-scoring users received free products, discounts and access to exclusive events, supported by deals with partners such as American Airlines.
Klout operated from an office at 77 Stillman Street in San Francisco, with 67 employees at the time of its 2014 acquisition by Lithium Technologies. Lithium sunset the Klout service on May 25, 2018.
Founding story
Joe Fernandez, a Computer Science and Finance graduate of the University of Miami who had previously spent six years co-founding the education data startup Evalulogix, underwent jaw surgery in December 2007 that led to complications and left his mouth wired shut until March 2008. Unable to speak for three months, he began using Twitter as a primary means of communication and became convinced that word of mouth had become scalable and measurable. He built Klout in part as a way to attract Twitter's attention and potentially be acquired by or hired at the company; he also set up an office in Twitter's building in San Francisco.
Business model
Klout collected and analyzed social network data to produce influence scores, then monetized the resulting influencer data by selling marketing data and tools to brands and by licensing access through an API used by over 1,000 companies. A consumer-facing perks program provided free products, discounts and event access to high-scoring users in partnership with brands.
Traction
By January 2011 the Klout API powered more than 1,000 companies and the consumer site was a popular destination. The company had 67 employees in its San Francisco office in early 2014. Its final fundraise valued the company at just under $200 million, and it was acquired for a reported $200 million.
Latest developments
Lithium Technologies announced on May 10, 2018 that Klout would be sunset, and the Klout website and Klout Score were shut down on May 25, 2018. Lithium CEO Pete Hess said Klout as a standalone service was not aligned with the company's long-term strategy and that its AI and machine learning capabilities would be applied to other Lithium product lines, alongside a planned new Twitter-based social impact scoring methodology.
▸Full profile — market position, technology, go-to-market, geography, history, risks & controversies
Market position
Klout described itself as the leader in online influence measurement and was characterized by investors as having become a generic term in the web lexicon. Fernandez later said many competitors had built influence trackers using the Twitter API, and that Klout secured its lead by being the first in the space to raise money, then negotiating a paid Twitter data contract (approximately $20,000 per month) whose terms required anyone else using the data for the same purpose to also pay, plus arrangements with data resellers, making it difficult for unfunded competitors to compete or obtain distribution.
Technology
Klout's core technology analyzed social network user data — including Facebook and Twitter data shared by users — to identify influential individuals based on the impact of their opinions, links, recommendations and other online content, producing a 1-to-100 score and topic-level influence rankings. Lithium later characterized the acquisition as having provided it with artificial intelligence and machine learning capabilities, which it redirected to other product lines after shutting the service.
Go-to-market
Consumers using the Klout.com site to track their own scores and earn perks; brands and marketers seeking to identify and target influential social media users, including Disney, Audi, Fox and American Airlines; and developers and companies consuming the Klout API.
Geography
Headquartered in San Francisco, California, with an office at 77 Stillman Street.
History
Joe Fernandez conceived Klout after jaw surgery in December 2007 left his mouth wired shut until March 2008, during which he became reliant on and obsessed with Twitter; he initially built the tool hoping Twitter would acquire it or hire him. Accounts of the founding date vary across sources between 2008 and 2009. Klout raised an early $1.5 million Series A, followed by an $8.5 million round led by the Kleiner Perkins Caufield & Byers sFund with Greycroft Partners in January 2011, and ultimately four venture rounds totaling roughly $40 million from backers including Kleiner Perkins and Microsoft. Joe Fernandez signed a term sheet with Lithium Technologies late on February 9, 2014; Re/code broke news of the pending deal two days later, and the acquisition closed at a reported $200 million. Fernandez left Lithium and in October 2016 launched a new Los Angeles startup, Joymode. Lithium announced on May 10, 2018 that it would sunset Klout, and the website and Klout Score shut down on May 25, 2018.
Risks & controversies
Klout was a persistently controversial company: the methodology behind its score was widely described as opaque, and the score became a frequent punchline among technology commentators. Its COO resigned in the autumn preceding the 2014 sale, press attention fluctuated, and the company struggled to convert early buzz into a sustainable business. Fernandez later publicly described competitive tactics — paying Twitter for data under a contract requiring rivals to pay as well, and fee-based advantages with data resellers — that he said made it hard for new competitors to emerge. Lithium's spokesperson said the upcoming GDPR compliance deadline expedited plans to sunset the service, which closed on the GDPR deadline date of May 25, 2018.
Compiled by commissioned research from 8 cited public sources — announcements, filings, and press listed under research sources below.
Key figures
latest reportedCompany-reported or press-reported figures, each dated to when it was claimed — not independently audited.
Timeline · 5
launches, deals, and filingsLithium Technologies announced on May 10, 2018 that it would sunset Klout, closing the website and Klout Score on May 25, 2018. CEO Pete Hess said Klout as a standalone service did not align with Lithium's long-term strategy; a spokesperson said the GDPR compliance deadline expedited the plans.
CEO Joe Fernandez signed Lithium Technologies' term sheet late on February 9, 2014; news of the pending deal was reported by Re/code two days later. The acquisition was completed in 2014 at a reported price of approximately $200 million.
$200M source ↗
Klout's chief operating officer resigned in the autumn prior to the March 2014 acquisition report.
Klout announced an $8.5 million funding round led by the Kleiner Perkins Caufield & Byers sFund with participation from Greycroft Partners and angel investors including ff Asset Management, Paige Craig, Howard Lindzon, Thomas McInerney and Bobby Yazdani, bringing total funding to more than $10 million.
$8.5M source ↗
KPCB partner William "Bing" Gordon joined Klout's board alongside Joe Fernandez, John Frankel and Allen Morgan in connection with the $8.5 million round.
Dated company events from announcements, filings, and press; legal rows summarize public dockets and regulator releases.
▸Research sources · 8
primary sources listed
- Klout Raises $8.5 Million to Enable Everyone to Understand and Leverage Their Influenceprnewswire.com · web
8 public sources were cited for this profile; the first-party ones are listed here.
Frequently asked questions
- What does Klout do?
- Klout was a San Francisco social influence measurement service that scored users 1-100 based on their social media data.
- Who are Klout's investors?
- Klout's investors include Ff Venture Capital, Kleiner Perkins, Vast Ventures, Venrock.