Shutterfly lands $23 million in funding

Shutterfly, Netscape co-founder Jim Clark's online photo start-up, says it has secured $23 million in its third round of financing. The Redwood Shores, Calif.-based company said the initial investors--Clark; Mohr Davidow Ventures; former Excite@Home chairman Tom Jermoluk; and Adobe Ventures--were joined by new investors, including Epoch Partners, Granite Ventures, Mitsubishi and Texas Instruments Ventures. Shutterfly said it will use the funds to expand its customer services, marketing programs and product offerings. Shutterfly also has inked a deal with retailer Best Buy to create, manage and market Best Buy's new Online Photo Center. Under the agreement, customers will be able to access the photo site to learn more about digital photography as well as to have a place to store, enhance and print their digital pictures. The Best Buy Online Photo Center will launch Feb. 19.