The Wall Street Journal: For Private Ad Tech Firms, The Money Keeps Flowing
Public investors might be souring on ad tech companies, but private ones definitely aren’t.
MediaMath, which helps automate the process of buying online advertising, announced Tuesday it raised $73.5 million in a Series C financing round and increased its debt financing facility to $105 million. Meanwhile AppNexus, another advertising technology provider, is in advanced discussions to raise as much as $100 million in a funding round that could include Chinese e-commerce giant Alibaba, WSJreported last week.
Investors don’t seem anywhere near as excited by publicly traded online ad companies, as WSJ’s CMO Today noted Monday. This year has been a graveyard for anyone investing in the sector. Among the worst performers: Rocket Fuel Inc.FUEL +0.50%, which is down 57% so far this year; Tremor VideoTRMR -1.02%, Inc., down 27%; Criteo SACRTO +4.85%, 13%; YuMeYUME +0.97%, Inc., 28%; Millennial Media Inc.MM -2.51%, 45%; and Rubicon ProjectRUBI +1.02%, Inc., nearly 16% below its April IPO price. Then there’s AOL, which is down 22%, at least in part due to concerns about its growing ad tech focus.
MediaMath said its funding will be used fuel further growth outside of the U.S., and to invest further in its products, which are designed to help automate and streamline the process of buying online advertising.
Sources close to AppNexus said the company also hopes to use proceeds from its own funding round to expand into non-U.S. markets.