AppNexus Raises $75 Million in Funding to Accelerate Rapid Growth
New capital positions company to transform the online ad marketplace
NEW YORK, January 24, 2013 - AppNexus today announced it has raised $75 million in Series D funding led by Technology Crossover Ventures (TCV), one of the largest growth equity firms focused on the tech industry. AppNexus joins Facebook, Netflix, ExactTarget and other groundbreaking companies within TCV's investment portfolio. Venrock and Tribeca Venture Partners also participated in the round.
AppNexus' new round of financing caps a year of success and expansion. Over the past twelve months the company has:
• Managed approximately $700 million of advertising spend
• Almost tripled revenues, with no client contributing approximately more than 12 percent
• Processed a peak of one million requests per second
• Quintupled delivery to over 13 billion ads served to websites each day
• Doubled global headcount to over 400 employees
• Signed major new clients, such as Interactive Media, Orange, and the Canadian Premium Audience Exchange (CPAX)
• Opened offices in Paris, Hamburg and Toronto, bringing its total number of global offices to nine
"AppNexus is the largest independent ad tech company. From serving the first RTB impression in 2008 to inventing the first app store for advertising in 2011 to being the first ad tech company to take a hardline stance against piracy, AppNexus has consistently led the industry in innovation," said Brian O'Kelley, CEO, AppNexus. "Raising this round gives us access to more than $100 million to create the next generation of innovations that will transform online advertising."
AppNexus also announced that David Yuan, TCV General Partner, joined the company's Board of Directors. Yuan, a respected investor and advisor to Internet and technology companies, is on the boards of ExactTarget (NYSE: ET), Merkle and Sitecore, and he has active investments in Facebook (NASDAQ: FB) and OSIsoft. Prior to joining TCV, Yuan was an investment professional with JPMorgan Partners and a management consultant at Bain & Company. He holds an AB in economics from Harvard University and an MBA from Stanford.
"Any time you have the chance to work closely with an executive team that pioneered companies like DoubleClick and Right Media, it's going to be an exciting opportunity," said Yuan. "We've followed AppNexus for the past five years and watched it emerge as the leading platform. We then dug in further and saw what the company has already achieved - as well as what it is looking to do in the next 12 months - and we were really impressed. With the online ad market forecasted to grow to $44 billion this year, we believe the company has tremendous upside. We look forward to a long-term partnership in helping AppNexus to build an important technology franchise."
With this Series D round, AppNexus' total funding is $140.5 million.
AppNexus, which offers the most powerful, open and customizable advertising technology platform, serves the largest and most innovative buyers and sellers of online advertising, including Microsoft Advertising Exchange, Collective and Technorati Media. Led by the pioneers of the Web's original ad exchanges at Yahoo!'s Right Media and Google's DoubleClick, AppNexus offers the industry's most advanced technology platform that empowers companies to build, manage and optimize their entire online advertising businesses. Based in New York City, AppNexus is backed by an outstanding group of investors including Technology Crossover Ventures, Microsoft, Venrock, Kodiak Venture Partners, Tribeca Venture Partners, First Round Capital, Marc Andreessen, Ben Horowitz, Ron Conway and Khosla Ventures. For more information, visit www.appnexus.com.
Technology Crossover Ventures (TCV), founded in 1995, is a leading provider of capital to growth-stage technology companies, providing funds to later-stage private and public companies. With $7.7 billion in capital raised, TCV has invested in nearly 200 technology companies over the last 17 years. Selected investments include Altiris, C|NET, ExactTarget, Expedia, Facebook, Fandango, FX Alliance, Go Daddy, Genesys Software, Groupon, HomeAway, Netflix, RealNetworks, Redback Networks, RiskMetrics Group, Sitecore, Splunk, Thinkorswim, and Zillow. TCV has 11 partners and is headquartered in Palo Alto, CA with offices in New York, NY and London. For more information about TCV, including a complete list of TCV investments, visit www.tcv.com.