Dealflow | October 18, 2006
The Big deal:
[Internet Services] – Right Media
THE REST:
[Biotechnology] – Efficas
[Internet Services] – Igglo Oy
INTERNET SERVICES
Right Media
San Jose, CA
Funding:$45M
Prior funding:$7.25M
Round:B
Description:Allows publishers to auction off chunks of advertising to interested bidders.
Lead Investors:Yahoo Inc.
The Herring Take:With Yahoo scheduling the full launch of its advertising platform for early 2007, the company’s deal to grab a chunk of Right Media seems to come at an ideal time.Not only will this give Right Media a solid opportunity to integrate its Right Media Exchange into Yahoo’s new advertising game plan, but on the flip side, Yahoo gets another opportunity to extend its advertising platform and overcome the image that Panama could just be “rebranded Google.”
But will Yahoo’s move be enough?Yahoo’s stock price jumped almost three percent (to $24.83) Tuesday after the company announced that the first phase of Panama was launching.Looking at the big picture, though, Yahoo’s predicting lower-than-expected revenue results for the fourth quarter.If the company wants to make analysts happy, it needs to get its hands on the Web advertising market.And soon; Right Media’s but a small part of the puzzle.
BIOTECHNOLOGY
Efficas
Orange, CA
Funding:$14.5M
Prior funding: $3M
Round:B
Description:Develops science-based products for the nutritional management of the immune system.
Lead Investors:LSP BioVentures
Other Investors:Unilever Technology Ventures, Burrill & Co., Great Spirit Ventures, JPMorganBay Area Equity Fund, and Prolog Ventures.
The Herring Take:By specializing in bioactives—natural compounds that promote health in humans—the company is tapping into a bustling industry.According to the Nutrition Business Journal, the U.S. nutrition industry pulls in over $75 billion dollars worth of revenues.Globally, the figure hits in upwards of $210 billion.
According to an article in The Denver Business Journal, Efficas is looking to position itself as the Intel of the nutritional industry.While microchips are a far cry from medical foods, Efficas’ focus on the science behind its products—not hype—could very well give it additional market acceptance and legitimacy.And from there, sales revenues.
IntelINTERNET SERVICES
Igglo Oy
Finland
Funding: $15.6
Prior funding: n/a
Round: n/a
Description: A Finnish online real estate service.
Lead Investor: Benchmark Capital Europe
Other Investor:Taivas Group
The Herring Take: Anyone speak Finnish?Seriously, because it’s the only way you’re going to enjoy Igglo’s services, currently operating only in Finland.The company has big dreams, though; the funding will help Igglo push its real estate model across Europe, with the eventual goal of becoming a, “global leader of next generation online real estate services,” so sayeth a statement by the company.
On its face, the company’s service is quite unique.Using Igglo, interested buyers can make an unsolicited offer on any house they want.This not only gives homeowners an idea of the market incentive towards purchasing, but also gives them a realistic valuation of their homes in terms of what buyers are actually willing to spend.
U.S.-based Redfin offers a comparable service.While its home hunting is currently confined to Seattle and the Bay Area, the site will refund two-thirds of the commission on any property bought through the service.Sure, Redfin has venture capital interest—but nothing speaks to consumers more than cold, hard cash.
RedfinContact the writer:DMurphy@RedHerring.com
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