Trinity Ventures

Microsoft, AOL & AppNexus Form Triumvirate; RadiumOne Raises $54m - ExchangeWire.com

This week’s European Weekly Roundup highlights major shifts in ad tech. AOL will assume responsibility for Microsoft’s display, mobile, and video inventory in nine markets (USA, UK, Canada, Brazil, France, Germany, Italy, Spain, Japan) as part of a strategic deal signaling Microsoft’s exit from the ads business. Meanwhile, Microsoft and AppNexus extended their exclusive programmatic partnership to 39 markets, with 10 additional markets added. RadiumOne announced a $54 million funding round to grow its Activate platform and expand in Europe and Asia; Harmony Partners led the round with participation from Industry Ventures and existing investors, and RBC Capital Markets served as exclusive placement agent, bringing total financing to over $87 million. Captify raised £8 million in Series B, led by Smedvig Capital, with follow-ons from Panoramic Growth Equity, to bolster its data-led search platform. Industry veteran Andrew Moore joined Millennial Media to head its platform business in EMEA, reporting to EVP Mark Connon, with CEO Michael Barrett overseeing the company.

TubeMogul IPO Mixed Reactions; Insiders Bullish

TubeMogul went public on NASDAQ, raising $43.75 million in its IPO, aided by a direct deal with Mondelez and strong Q1 results showing a 130% year-over-year revenue increase, with 73% from self-serve clients. The IPO price range was originally $11–$13, which would have yielded about $93 million, more than the $43.75 million raised. On the first day, the stock surged as much as 64% from the $7 starting price, yet traded around $10.79 by 2:30 pm ET, still below the bottom of the initial range. Peer ad-tech IPOs (e.g., Rubicon Project, Rocket Fuel) have experienced lukewarm receptions and declines. Longtime backers Trinity Ventures ($5 million) and Foundation Capital ($20 million) bought more shares, lifting their holdings to 21% and 18%. Ashu Garg of Foundation Capital called it a value IPO, while insiders remained bullish despite mixed market signals.

TubeMogul Prices IPO Shares Lower, Valuation Shrinks To $244M

TubeMogul priced its initial public offering at a lower level than previously indicated, setting an updated offer price range of $7.00 to $8.00 per share. With the reduced pricing, the company expects to raise about $47 million, significantly less than the earlier target of $93 million. The amended filing implies a market capitalization of roughly $244 million, down about 38% from a prior ceiling of $394 million. Insider participation remains strong, with $5 million from Trinity Ventures and $20 million from Foundation Capital added to an offer insiders plan to purchase 53% of. In early 2014, TubeMogul reported Q1 revenues of $22 million, with total platform spend of $48 million and a gross margin of 72%, while net losses narrowed to $0.8 million from $1.9 million a year earlier.