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	<title>Red Herring&#187; Finance</title>
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	<link>http://www.redherring.com</link>
	<description>THE BUSINESS OF TECHNOLOGY</description>
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		<title>Eventbrite Raises $60M, Puts Off IPO</title>
		<link>http://www.redherring.com/finance/eventbrite-raises-60m-puts-off-ipo/</link>
		<comments>http://www.redherring.com/finance/eventbrite-raises-60m-puts-off-ipo/#comments</comments>
		<pubDate>Tue, 23 Apr 2013 23:04:01 +0000</pubDate>
		<dc:creator>Red Herring Editorial Team</dc:creator>
				<category><![CDATA[Finance]]></category>
		<category><![CDATA[Startups]]></category>

		<guid isPermaLink="false">http://www.redherring.com/?p=2758</guid>
		<description><![CDATA[Those waiting for Eventbrite to go public will have to be patient. The online ticketing company recently raised $60 million to buy it more time. The round was led by Tiger Global Management, and included a new investment partner, T. Rowe Price. It brings Eventbrite’s total investment to $140 million. &#8220;We believe Eventbrite has a [...]]]></description>
				<content:encoded><![CDATA[<p dir="ltr">Those waiting for Eventbrite to go public will have to be patient. The online ticketing company recently <a href="http://www.marketwire.com/press-release/eventbrite-announces-60-million-in-growth-capital-financing-1781222.htm">raised $60 million </a>to buy it more time.</p>
<p>The round was led by Tiger Global Management, and included a new investment partner, T. Rowe Price. It brings Eventbrite’s total investment to $140 million.</p>
<p>&#8220;We believe Eventbrite has a strong underlying financial model that will continue to scale, and its valuation will be well supported by traditional financial metrics in the future,” said Henry Ellenbogen, Portfolio Manager at T. Rowe Price Associates, Inc. “When we look at private companies, we look for companies that possess the capabilities and mindset to build a much larger and durable company. We believe that the Eventbrite team has the track record and skills to achieve that status.&#8221;</p>
<p>The funding will be used to further innovate the company’s platform, accelerate international growth, evolve its mobile capabilities, and hire personnel.</p>
<p>Though the company has long been eying an IPO, this latest investment means it can take its time.</p>
<p dir="ltr">&#8220;This gives us flexibility in setting the timeline for a later IPO, on our schedule,&#8221; co-founder and CEO Kevin Hartz <a href="http://online.wsj.com/article/SB10001424127887323551004578436851078712808.html?mod=googlenews_wsj">told the Wall St. Journal</a>.  &#8221;An IPO is an inevitability, but the timing is (to be determined).”</p>
<p>People close to the deal said the company’s valuation was about $600 million to $700 million.</p>
<p dir="ltr">The talk of an IPO was more than just a rumor. Hartz<a href="http://thenextweb.com/insider/2013/04/22/eventbrite-raises-60m-more-putting-off-an-ipo-right-after-hitting-1-5b-in-gross-ticket-sales/"> told the Next Web</a> in June that its next capital raising would be an IPO rather than another funding round. The company apparently changed its mind.</p>
<p>Eventbrite competes head to head with Ticketmaster, which is actually Live Nation Entertainment following its merger with Live Nation in 2010. Eventbrite has sold more than 100 million tickets and registrations, or more than $1.5 billion in gross ticket sales since its 2006 founding. A third of those sales have happened in the last nine months.</p>
<p>&#8220;Live experiences are the new luxury good &#8212; from large festivals and concerts to conferences and political rallies, people are increasingly looking to share live experiences with people of similar interests and passions,” said Kevin Hartz, CEO of Eventbrite. “We&#8217;re pleased to be able to work with existing as well as new investors who truly understand the opportunities that these kind of occasions represent, as well as the power of the platform we have built to make them happen.”</p>
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		<title>IBM Acquires UrbanCode for Fast App Development</title>
		<link>http://www.redherring.com/finance/ibm-acquires-urbancode-for-fast-app-development/</link>
		<comments>http://www.redherring.com/finance/ibm-acquires-urbancode-for-fast-app-development/#comments</comments>
		<pubDate>Tue, 23 Apr 2013 22:40:30 +0000</pubDate>
		<dc:creator>Red Herring Editorial Team</dc:creator>
				<category><![CDATA[Finance]]></category>
		<category><![CDATA[Software]]></category>

		<guid isPermaLink="false">http://www.redherring.com/?p=2755</guid>
		<description><![CDATA[In a sign that devops, the practice of fast software deployment, is the next big thing, IBM has acquired UrbanCode, a Cleveland software startup that automates the production and delivery of apps. The company’s systems are aligned with IBM’s own SmartCloud and Mobile First initiatives and will reportedly nicely complement IBM’s Worklight mobile application development [...]]]></description>
				<content:encoded><![CDATA[<p dir="ltr">In a sign that devops, the practice of fast software deployment, is the next big thing, IBM has acquired UrbanCode, a Cleveland software startup that automates the production and delivery of apps. The company’s systems are aligned with IBM’s own SmartCloud and Mobile First initiatives and will reportedly nicely complement IBM’s Worklight mobile application development platform.</p>
<p>“For example, by combining UrbanCode software with the IBM MobileFirst Worklight technology, businesses can now author and deploy an application for any mobile device in hours, versus a previous multi-day timeline,” IBM explained in a <a href="http://online.wsj.com/article/PR-CO-20130422-908501.html?mod=googlenews_wsj">press release</a>. “The UrbanCode solution also works with traditional applications including middleware, databases and business intelligence.”</p>
<p dir="ltr">Terms of the deal were undisclosed.</p>
<p>UrbanCode works to speed up the design, production and delivery of software, cutting down the time between updates to applications. The company’s DevOps platform includes applications such as uDeploy, uBuild, uProvision, and uRelease, and helps to update apps, receive feedback, and improve production speeds. It’s a play that better connects IBM to social, cloud and big data app producers that require rapid development speeds.</p>
<p>&#8220;Companies that master effective software development and delivery in rapidly changing environments such as cloud, mobile and social will have a significant competitive advantage,&#8221; said Kristof Kloeckner, general manager, IBM Rational Software. &#8220;With the acquisition of UrbanCode, IBM is uniquely positioned to help businesses from every industry accelerate delivery of their products and services to better meet client demands.&#8221;</p>
<p>IBM will continue to support UrbanCode’s clients and plans to upsell them on a broader portfolio.</p>
<p>“Together UrbanCode and IBM technology will be unmatched in the industry, providing businesses a continuous process for developing, testing, and delivering new and updated software,&#8221; said Maciej Zawadzki, chief executive officer, UrbanCode. &#8220;By removing the bottlenecks that traditionally exist between development teams and production systems, businesses can drive rapid innovation.&#8221;</p>
<p>Its IBM’s second deal of 2013. In the last three years, IBM has spent about $12 million on acquisitions, ISI analyst Brian Marshall noted in the company’s press release.</p>
<p>To gain similar capabilities, BMC, an IBM competitor in systems management tools, acquired Varalogix to accelerate its development speeds.</p>
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		<title>Indochina Raises $13M for Custom Online Menswear Shop</title>
		<link>http://www.redherring.com/finance/indochina-raises-13m-for-custom-online-menswear-shop/</link>
		<comments>http://www.redherring.com/finance/indochina-raises-13m-for-custom-online-menswear-shop/#comments</comments>
		<pubDate>Fri, 05 Apr 2013 00:45:18 +0000</pubDate>
		<dc:creator>Red Herring Editorial Team</dc:creator>
				<category><![CDATA[Finance]]></category>
		<category><![CDATA[Startups]]></category>

		<guid isPermaLink="false">http://www.redherring.com/?p=2696</guid>
		<description><![CDATA[It costs money to look good, and Indochina just got a bundle, raising $13 million in a Series B round led by the Highland Consumer Fund with participation by existing investors Madrona Venture Group, Acton Capital Partners, and Jeff Mallett , Indochino Chairman and former president and COO of Yahoo!. Tom Stemberg of the Highland [...]]]></description>
				<content:encoded><![CDATA[<p dir="ltr">It costs money to look good, and Indochina just got a bundle, <a href="http://finance.yahoo.com/news/indochino-raises-13-million-series-113000147.html">raising $13 million</a> in a Series B round led by the Highland Consumer Fund with participation by existing investors Madrona Venture Group, Acton Capital Partners, and Jeff Mallett , Indochino Chairman and former president and COO of Yahoo!.</p>
<p>Tom Stemberg of the Highland Consumer Fund will join the company’s board. Stemberg is the founder of Staples and sits on the board of a broad set of retailers from lululemon athletica to PetSmart.</p>
<p>&#8220;Most men need all the help they can get when shopping for their own wardrobe,&#8221; says Tom Stemberg, Managing General Partner of Highland Consumer Fund. &#8220;By providing higher quality custom menswear at a lower cost, Indochino has revolutionized the direct-to-consumer business and become a global presence in custom menswear.&#8221;</p>
<p>Indochina is an online menswear shop that specializes in custom clothing. Shoppers choose from a selection of suits, shirts, outerwear and accessories, select a style for each with customizable options such as linings, trim, and monograms. Each measurement profile is customizable at every level. The suit is then assembled and delivered to the buyer’s home within 35 hours.</p>
<p>The company claims it can offer high quality clothing at a reasonable price by cutting out the middleman at the tailor shop while still providing a speedy service. The company will invest this latest round in building out its management team as well as its marketing and development departments.</p>
<p>&#8220;Over the past several years we have seen incredible growth in the world of online to offline fashion,&#8221; said Kyle Vucko, CEO and co-founder, Indochino. &#8220;Consumers are accustomed to the convenience of online shopping, but want something more personal.”</p>
<p>With this round of funding, the company announced the launch of a pop up “travelling tailor” store in Boston where shoppers can be measured in person.</p>
<p>The online mens shopping sector has gotten a good deal of investment heat lately. Online men’s clothing retailer Bonobos raised $16.4 million last year.</p>
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		<title>AccessData Raises $45M for First Investment in its 25+ Year History</title>
		<link>http://www.redherring.com/finance/accessdata-raises-45m-for-first-investment-in-its-25-year-history/</link>
		<comments>http://www.redherring.com/finance/accessdata-raises-45m-for-first-investment-in-its-25-year-history/#comments</comments>
		<pubDate>Wed, 20 Mar 2013 23:06:36 +0000</pubDate>
		<dc:creator>Red Herring Editorial Team</dc:creator>
				<category><![CDATA[Finance]]></category>
		<category><![CDATA[Software]]></category>

		<guid isPermaLink="false">http://www.redherring.com/?p=2645</guid>
		<description><![CDATA[AccessData, the cyber security and digital forensics company that was one of the first to get in on the data and cyber protection gig way back in 1987, has raised $45 million for its first funding in the legacy company’s 26 year history. The investment includes a $20 million equity trade from Sorenson Capital and [...]]]></description>
				<content:encoded><![CDATA[<p dir="ltr">AccessData, the cyber security and digital forensics company that was one of the first to get in on the data and cyber protection gig way back in 1987, has raised $45 million for its first funding in the legacy company’s 26 year history.</p>
<p>The investment includes a $20 million equity trade from Sorenson Capital and $25 million in structured debt from Silicon Valley Bank. The funding allows it to “reduce outside ownership and add Sorenson as a strategic, long-term partner,” the company explained in a press release.</p>
<p>“By consolidating our ownership and adding a strategic partner like Sorenson Capital, while strengthening our relationship with Silicon Valley Bank, AccessData is better positioning itself to take advantage of its unique place in the market,” said Tim Leehealey, CEO of AccessData.</p>
<p>AccessData currently serves more than 130,000 users in law enforcement, government agencies, corporations and law firms worldwide. It provides software solutions as well as digital investigation, hosted review services, digital forensics and litigation support training and certification. CIRT 2, its flagship product, is a cyber protection platform that utilizes malware analysis, large-scale data auditing and remediation while integrating with network and computer forensics.</p>
<p>“By combining AccessData’s strong market position with Sorenson Capital’s proven track record of taking companies to the next level, we believe we can accelerate growth at AccessData and deliver  extensive value to shareholders and customers alike,” said Ron Mika, a co‐founder and Managing Director of Sorenson Capital. “This is an exciting company and a compelling opportunity. We are anxious to see where the team can take it over the coming years.”</p>
<p dir="ltr">It has offices in Washington D.C., New York, Houston and San Francisco, as well as in the UK and Australia.</p>
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		<title>NewsCred Raises $15M as Middleman for 3rd Party Media Content</title>
		<link>http://www.redherring.com/finance/newscred-raises-15m-as-middleman-for-3rd-party-media-content/</link>
		<comments>http://www.redherring.com/finance/newscred-raises-15m-as-middleman-for-3rd-party-media-content/#comments</comments>
		<pubDate>Tue, 19 Mar 2013 23:29:08 +0000</pubDate>
		<dc:creator>Red Herring Editorial Team</dc:creator>
				<category><![CDATA[Finance]]></category>
		<category><![CDATA[Startups]]></category>

		<guid isPermaLink="false">http://www.redherring.com/?p=2637</guid>
		<description><![CDATA[NewsCred, a media company that serves as a middle man for third party media content, has raised $15 million and added the New York Times as a prestigious partner to give its model more validity. Founded in 2008, Newswire reinvents the newswire business model by offering media companies an easy way to syndicate premium content. [...]]]></description>
				<content:encoded><![CDATA[<p dir="ltr">NewsCred, a media company that serves as a middle man for third party media content, has <a href="http://www.businesswire.com/news/home/20130319005436/en/NewsCred-Closes-15-Million-Financing-Reinvent-Marketing">raised $15 million</a> and added the New York Times as a prestigious partner to give its model more validity.</p>
<p dir="ltr">Founded in 2008, Newswire reinvents the newswire business model by offering media companies an easy way to syndicate premium content. Rather than offering its own content, the company acts as the middleman, working with media companies as well as brands to simplify licensing and payment arrangements. It syndicates content from more than 2,500 publishers.  The company’s media clients include The Economist, Bloomberg, Gizmodo, VentureBeat, and TheNextWeb, while brands include Pepsi, GE, The Hartford, and Johnson &amp; Johnson.</p>
<p>The company will focus this latest round in continuing to grow its newswire service.</p>
<p>The $15 million was led by the Mayfield Fund, with participation by new investor Greycroft Partners and existing investors FirstMark Capital and IA Ventures. It brings the company’s total funding to just under $20 million, including $700,000 in seed money and $4 million in Series A.</p>
<p>“As the leading content marketing and syndication platform, NewsCred is enabling its clients to drive exponential growth in traffic from social referrals, triple digit percentage increase in unique visitors and double digit percentage growth in email open rates,” said Rajeev Batra, Partner, Mayfield Fund. “Marketing is being disrupted by software, Big Data and the need for high quality content, which we have witnessed firsthand given our involvement with several leading marketing software companies. For marketers, content is the currency for establishing authentic relationships with their consumers.”</p>
<p>The profitable company has seen revenue increase 11-fold, with a 570 percent increase in new customers.</p>
<p>The company began in 2008 as a way to offer publishers supplemental content, but began publishing content on the websites  of brands due to high demand. It does not offer advertised content, but rather non-branded content to help supplement the advertising. The addition of the New York Times helps add legitimacy to its pioneering model.</p>
<p>“We have a huge market opportunity in front of us,” Shafqat Islam, NewsCred’s CEO, explained in a <a href="http://blog.newscred.com/article/2f44ea6285c5a8c329e478bcd8731ef0/newscred-closes-15-million-financing-round-to-reinvent-marketing-through-quality-content">blog post</a>. “We will execute with speed and discipline, run faster than the fastest competitor, and reward and celebrate the incredible people who help us achieve our goals. But through it all, we remain steadfastly committed to helping the news industry not just survive, but to thrive. And that is certainly worth fighting for.”</p>
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		<title>Endgame Raises $23M to Take Security Solutions Beyond Government’s Door</title>
		<link>http://www.redherring.com/finance/endgame-raises-23m-to-take-security-solutions-beyond-governments-door/</link>
		<comments>http://www.redherring.com/finance/endgame-raises-23m-to-take-security-solutions-beyond-governments-door/#comments</comments>
		<pubDate>Thu, 14 Mar 2013 00:55:37 +0000</pubDate>
		<dc:creator>Red Herring Editorial Team</dc:creator>
				<category><![CDATA[Finance]]></category>
		<category><![CDATA[Startups]]></category>

		<guid isPermaLink="false">http://www.redherring.com/?p=2615</guid>
		<description><![CDATA[Cybercrime is making big money, and not just for the criminals. The rise of cyberattacks has led to a big market for solutions to fight it. This week, Endgame, a next generation protector against cybercrime, has raised $23 million in a round led by Paladin Capital, the private equity firm. Existing investors Bessemer Venture Partners, [...]]]></description>
				<content:encoded><![CDATA[<p>Cybercrime is making big money, and not just for the criminals. The rise of cyberattacks has led to a big market for solutions to fight it. This week, Endgame, a next generation protector against cybercrime, <a href="http://www.pehub.com/190839/endgame-closes-23m-cyber-security/">has raised $23 million</a> in a round led by Paladin Capital, the private equity firm. Existing investors Bessemer Venture Partners, Columbia Capital, Kleiner Perkins Caulfield &amp; Byers and TechOperators also participated.</p>
<p>Endgame has traditionally developed tools to fight cybercrime for government customers. The company will use this latest funding to help it expand into other markets, particularly in the private sector.</p>
<p>“The cyber needs of federal and commercial entities are converging as states look beyond targeting other states to target private companies, and national security thinking must increasingly account for private infrastructure,” said Nate Fick, CEO of Endgame. “I’m excited about leveraging the solutions and technology that our mission partners depend on to help businesses with comprehensive command and control of their network operations.”</p>
<p>Founded in 2008, Endgame enables real time command and control capabilities through analytics, visualization and knowledge discovery to enhance security perimeters.</p>
<p>In addition to its investment, Endgame also gains some noteworthy talent on its board. Lt. Gen. (Ret) Kenneth A. Minihan, former director of the U.S. National Security Agency, will join Endgame’s board, as he currently works with Paladin’s managing director.</p>
<p>“The cyber domain will be increasingly important across all dimensions of national power – military, economic, and informational,” said Lt. General Minihan. “Endgame’s revolutionary technology allows its customers to use intelligence seamlessly to gain situational awareness and support their end-to-end network operations.”</p>
<p>Endgame has been on a talent acquiring role in the last several months. Fick joined as CEO last year.The company’s recently hired CTO, Matt Georgy, previously served as a computer security officer with the Department of Defense and the Air Force. The chairman of its board is Christopher Darby, the CEO of In-Q-Tel, the venture capital firm of the CIA.</p>
<p>In addition to a $29 million round in 2010, the company’s total funding is now $52 million.<b id="internal-source-marker_0.5707936014514416"><br />
</b></p>
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		<title>Middle East Daily Deals Site Cobone Acquired by Tiger Global Management</title>
		<link>http://www.redherring.com/finance/middle-east-daily-deals-site-cobone-acquired-by-tiger-global-management/</link>
		<comments>http://www.redherring.com/finance/middle-east-daily-deals-site-cobone-acquired-by-tiger-global-management/#comments</comments>
		<pubDate>Tue, 12 Mar 2013 19:48:56 +0000</pubDate>
		<dc:creator>Red Herring Editorial Team</dc:creator>
				<category><![CDATA[Finance]]></category>
		<category><![CDATA[Global]]></category>
		<category><![CDATA[Startups]]></category>

		<guid isPermaLink="false">http://www.redherring.com/?p=2606</guid>
		<description><![CDATA[Cobone, one of the biggest daily deals companies in the Middle East with over 2 million subscribers, has been acquired by Tiger Global Management, a New York investment firm whose early stage investment sheet includes Facebook, Zynga and LinkedIn. The deal buys out the stakes of management and Jabbar Internet Group, and leaves Cobone with [...]]]></description>
				<content:encoded><![CDATA[<p>Cobone, one of the biggest daily deals companies in the Middle East with over 2 million subscribers, <a href="http://www.prnewswire.co.uk/news-releases/leading-middle-eastern-daily-deal-site-cobonecom-acquired-by-tiger-global-management-196754431.html">has been acquired </a>by Tiger Global Management, a New York investment firm whose early stage investment sheet includes Facebook, Zynga and LinkedIn. The deal buys out the stakes of management and Jabbar Internet Group, and leaves Cobone with additional capital for further expansion in the region.</p>
<p>&#8220;This deal represents the international recognition of a highly successful local business,” stated Samih Toukan, Chairman of Jabbar Internet Group. “With Paul Kenny, we created a company that led the way in regional group buying, and took on global players on our own turf. While this deal represents a successful exit for the Jabbar Group, we have little doubt in Cobone&#8217;s commitment to the region and in Paul&#8217;s determination to continue excelling and leading his brainchild to new successes.&#8221;</p>
<p>Though the price of the deal was undisclosed, <a href="http://www.zawya.com/story/New_Yorkbased_Tiger_Global_buys_Dubai_deals_website_Cobonecom__source-ZW20130310000004/">Zawya pegged the price </a>between $20 million to $40 million, citing sources close to the deal. The deal was a mix of cash and equity stakes for the management, and retains founder of CEO Paul Kenny, head of strategy and sales Pieter Sleeboom, and marketing head Warwick Godfrey.</p>
<p>&#8220;This deal represents a very exciting future for Cobone as it reaffirms its commitment to the Middle Eastern market and e-commerce industry,&#8221; Kenny said. &#8220;Tiger Global gives us the international clout and the financial resources to expand regionally and surpass already high customer expectations.”</p>
<p>Like other daily deals sites like Groupon and LivingSocial, the company’s revenue is overshadowed by its expenses. The company posted an overall loss despite earning $32 million. It plans to restructure its operations to hopefully profit this year. Founded in 2010, the company has grown to become the largest daily deals site in the Middle East with operations in operations in the United Arab Emirates and Saudi Arabia.</p>
<p>It has maintained its position from LivingSocial, which forayed into the Middle East through its purchase of GoNabit in June of 2011, and then shut down operations in the region a year later.<br />
Ecommerce has been slow to catch on in the Middle East. When Cobone first launched in 2010, the majority of its shoppers simply ordered on the site and paid cash on delivery due to the lack of a cohesive payments option in the region.<b id="internal-source-marker_0.9664843599312007"><br />
</b></p>
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		<title>Real Estate Site Trulia Look to Raise $150M for Acquisition Aspirations</title>
		<link>http://www.redherring.com/finance/real-estate-site-trulia-look-to-raise-150m-for-acquisition-aspirations/</link>
		<comments>http://www.redherring.com/finance/real-estate-site-trulia-look-to-raise-150m-for-acquisition-aspirations/#comments</comments>
		<pubDate>Tue, 12 Mar 2013 18:20:16 +0000</pubDate>
		<dc:creator>Red Herring Editorial Team</dc:creator>
				<category><![CDATA[Finance]]></category>
		<category><![CDATA[Internet]]></category>
		<category><![CDATA[Startups]]></category>

		<guid isPermaLink="false">http://www.redherring.com/?p=2604</guid>
		<description><![CDATA[Trulia, the real estate listings site that went public last year, is looking to raise about $150 million through selling previously locked up shares. The company will use the funding to purchase acquisitions. In an SEC filing, the company indicated it would offer about 5.25 million shares in a primary and secondary offering. About 1.75 [...]]]></description>
				<content:encoded><![CDATA[<p>Trulia, the real estate listings site that went public last year, is<a href="http://www.businesswire.com/news/home/20130311005692/en/Trulia-Announces-Launch-Proposed-Follow-On-Offering-Common"> looking to raise</a> about $150 million through selling previously locked up shares. The company will use the funding to purchase acquisitions.</p>
<p>In an <a href="http://www.sec.gov/Archives/edgar/data/1349454/000119312513099631/d493065ds1a.htm">SEC filing</a>, the company indicated it would offer about 5.25 million shares in a primary and secondary offering. About 1.75 million of those will come from stockholders, while 3.5 million will come from inside Trulia. The latest reporting price on the company was $30.44 per share on the New York Stock Exchange. The sale could raise as much as $164 million.</p>
<p>The company has been saving its piggy bank. It hasn’t made an acquisition since its purchase of Movity in 2010, biding its time for the right sale. Its team has spent the last year or so evaluating startups but has chosen to build their own solutions rather than acquire technology off the shelf.</p>
<p>Trulia powers the search for a home with a system that makes it easy to search and track properties. The company provides easy to find relevant data about crime. It has more than 5 million homes listed on the site. It recently added a “suggests” feature that works similar to Netflix in suggesting recommendations based on viewing history and personal preferences.<br />
About two thirds of the money raised will go to the company’s cash reserves.</p>
<p>Though the company has been successful in connecting with an online audience, the company still reported a $1.59 million net loss, though down from the loss of $2.5 million the year before.<b id="internal-source-marker_0.858156316448003"><br />
</b></p>
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		<title>Low on Cash, LivingSocial Raises Another $110M, Strives for Profitability</title>
		<link>http://www.redherring.com/finance/low-on-cash-livingsocial-raises-another-110m-strives-for-profitability/</link>
		<comments>http://www.redherring.com/finance/low-on-cash-livingsocial-raises-another-110m-strives-for-profitability/#comments</comments>
		<pubDate>Fri, 22 Feb 2013 18:35:19 +0000</pubDate>
		<dc:creator>Red Herring Editorial Team</dc:creator>
				<category><![CDATA[Finance]]></category>
		<category><![CDATA[Internet]]></category>
		<category><![CDATA[Social]]></category>

		<guid isPermaLink="false">http://www.redherring.com/?p=2542</guid>
		<description><![CDATA[Amazon has thrown LivingSocial a lifeline. The daily deals company has raised another $110 million, bringing the company’s investment funding to a staggering $910 million since its founding in 2007. Investors in this latest round include Steve Case, Grotech Ventures, Revolution, US Venture Partners, Lightspeed Venture Partners, JP Morgan, T. Rowe Price, and Amazon. The [...]]]></description>
				<content:encoded><![CDATA[<p>Amazon has thrown LivingSocial a lifeline. The daily deals company has raised another $110 million, bringing the company’s investment funding to a staggering $910 million since its founding in 2007. Investors in this latest round include Steve Case, Grotech Ventures, Revolution, US Venture Partners, Lightspeed Venture Partners, JP Morgan, T. Rowe Price, and Amazon.</p>
<p>The news was leaked to employees in a memo this week, according to <a href="http://www.washingtonpost.com/business/economy/livingsocial-receives-110-million-cash-infusion/2013/02/20/618163ea-7b79-11e2-9a75-dab0201670da_story.html">the Washington Post.</a></p>
<p>Amazon had previously invested $175 million to take a 29 percent stake in the startup, a stake that has since declined to $52 million due to a number of operational costs that weigh down the company. Though LivingSocial managed to more than double its revenue last year to $536 million up from $250 million, it nevertheless had a net loss of $650 million, an increase over the $499 million loss the company had in 2011.</p>
<p>As the wind goes out of the sales of daily deal startups, LivingSocial struggles to regain share of the market in a turbulent and crowded space. Its rival, Groupon, has also struggled to maintain relevance since its troubled IPO in 2011. Groupon’s stock debut at $20 a share, but is currently worth around $5.60.</p>
<p>Last November, LivingSocial laid off 400 employees, or 10 percent of its work force. In December, <a href="http://pandodaily.com/2012/12/04/livingsocial-may-be-running-dangerously-low-on-cash-and-time-will-amazon-come-to-the-rescue/">PandoDaily reported </a>LivingSocial was running dangerously low on cash and owed a lot to merchants.</p>
<p>This latest investment will be used to build reserves, solidify long term strategies, and attempt to reach profitability.</p>
<p>“…we have an aggressive roadmap for profitability and expansion this year, and those plans include increased investment in areas like marketing, technologies, and mobile,” the memo reads. “This new investment round will allow us to dedicate the resources we need, while also building a significant cash reserve against unanticipated events or bumps in the road.</p>
<p>“This new investment does not change our plans to reach profitability, and we believe that a cash-flow positive and growing company will give us even deeper resources to take advantage of new opportunities, extend our promising lines of business, and expand a robust funnel of new customers,” the memo added.<b id="internal-source-marker_0.889688431750983"><br />
</b></p>
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		<title>Pinterest Raises $200M at $2.5B Valuation, Buys Time to Monetize</title>
		<link>http://www.redherring.com/finance/pinterest-raises-200m-at-2-5b-valuation-buys-time-to-monetize/</link>
		<comments>http://www.redherring.com/finance/pinterest-raises-200m-at-2-5b-valuation-buys-time-to-monetize/#comments</comments>
		<pubDate>Fri, 22 Feb 2013 01:55:50 +0000</pubDate>
		<dc:creator>Red Herring Editorial Team</dc:creator>
				<category><![CDATA[Finance]]></category>
		<category><![CDATA[Internet]]></category>
		<category><![CDATA[Startups]]></category>
		<category><![CDATA[Top Stories]]></category>

		<guid isPermaLink="false">http://www.redherring.com/?p=2535</guid>
		<description><![CDATA[Pinterest has raised a $200 million round that values the company at $2.5 billion. The cash essentially buys the social sharing site more time to figure out how to actually make money to justify that valuation. The round included participation from existing investors Andreessen Horowitz, Bessemer Venture Partners and FirstMark Capital, along with new investor [...]]]></description>
				<content:encoded><![CDATA[<p>Pinterest has raised a $200 million round that values the company at $2.5 billion. The cash essentially buys the social sharing site more time to figure out how to actually make money to justify that valuation.</p>
<p>The round included participation from existing investors Andreessen Horowitz, Bessemer Venture Partners and FirstMark Capital, along with new investor Valiant Capital Management LP.</p>
<p>“Our focus is on helping millions of people discover things they love and get inspiration to go do those things in their life,” CEO Ben Silbermann said in a statement provided to <a href="http://allthingsd.com/20130220/exclusive-pinterest-complete-200-million-funding-at-2-5-billion-valuation/">All Things D</a>, which first confirmed the funding. “This investment gives us more resources to help realize that vision.”</p>
<p>Launched in 2010, Pinterest practically came out of nowhere to become a widely used social media tool. It now has over 50 million unique monthly users around the globe, and has earned a place as one of the top three social networks in North America, alongside Twitter and Facebook. Its users “pin” photos and videos to a virtual peg board, creating a collage of their interests. Users can then follow each other according to personal interests.</p>
<p>The company’s last round of funding was $100 million in May of 2012. In total, it has now raised $340 million.</p>
<p>That’s a considerable amount of cash for a free service that has yet to form a monetization plan. Yet Pinterest clearly offers value that interests brands. An article in the <a href="http://online.wsj.com/article/SB10001424127887324900204578286274194291126.html">Wall St. Journal </a>earlier this month noted that Pinterest features a longer sharing lifecycle for its social content. Whereas content shared on Twitter and Facebook enjoy quality interaction, it’s a fast shelf life that quickly stales. Material shared on Pinterest, on the other hand, “can resurface months later when people continue to discover it,” the article noted, citing Hearst Digital Media that had 3 to 5 percent of its traffic come from Pinterest, compared to 1.5 percent each for Facebook and Twitter.</p>
<p>“The longevity of content [on Pinterest] is very valuable to us,” Brian Madden. executive director of social media for Hearst Corp.’s Hearst Digital Media told the Wall St. Journal.</p>
<p>Pinterest has reportedly been considering advertising, as well as a way to monetize its relationships with businesses. The company introduced business accounts last year that enable users to measure the attention their products are getting on the site.</p>
<p>Based in San Francisco, Pinterest employs 100 people.<b id="internal-source-marker_0.6312906192615628"><br />
</b></p>
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