Venture Capital News
IGA Worldwide's Series A Expands To $17 Million
IGA Worldwide, the leading independent in-game advertising company, announced a combined $5 million investment from Intel Capital and IGA's existing investor group to complete a Series A funding round that totals $17 million.
A consortium of investors co-led by New York-based Easton Capital, Morgenthaler Ventures and including existing investor DN Capital had earlier subscribed to the Series A funding round initially announced at $12 million.
IGA Worldwide will use the funding to expand its relationships with publishers and continue to extend its global operations in support of a growing base of customers in North America, Europe and Asia.
As a conduit between advertisers, agencies and publishers, IGA Worldwide and its strategic communications consultancy IGA Hive provide the expertise, services and infrastructure to tap into a mass entertainment audience that reaches out to 150 million people in the US alone, predominantly in the lucrative and notoriously hard-to-reach 18 to 34 year old male audience.
Industry sources state the cost of developing games for new platforms is now estimated at $10 to $30 million. In-game advertising provides publishers with a valuable new revenue stream as well as brand-funded game content and co-promotional exposure, helping to offset the commercial risks of bringing exciting new titles to market.
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Constant Contact Announces $15 Million in Funding
Representatives of Constant Contact, a leading email marketing service for small businesses, associations, and nonprofits, announced June 30 that it is closing a $15 million round of venture capital- led financing. This round of funding is being led by new investor, Greylock Partners, who committed $10 million. An additional $5 million is being provided by the Company's existing investors, including Commonwealth Capital Ventures, Hudson Ventures, Longworth Venture Partners, and Morgan Stanley Venture Partners. Constant Contact will use the proceeds to fund its current and future growth opportunities.
Launched in 1998, Constant Contact helps small businesses and organizations build lasting customer relationships through professional email communications. Using the web-based ASP solution, Constant Contact's current 65,000 customers - from retail, restaurants, and spas to business services, consultants, nonprofits, and associations - can create and send professional email newsletters, announcements, promotions, and more to build customer loyalty and generate repeat business.
With more than 65,000 customers today, Constant Contact has achieved significant growth in recent years. In 2005, Constant Contact doubled its customer base from 25,000 to 50,000 and saw an 84 percent increase in revenue. In addition, the company experienced a two-year revenue growth of 231 percent between 2003 and 2005. To support this current and future growth, Constant Contact plans to hire an additional 50 people in 2006, bringing the total workforce to more than 200.
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IVREA Pharmaceuticals Raises $11 Million for Clinical Development
Representatives of IVREA Pharmaceuticals, an emerging specialty pharmaceutical company focusing on dermatology, announced June 30 that the company raised $11 million from existing investors Atlas Venture and Easton Capital and new investor CHL Medical Partners. "Our existing investors and CHL Medical Partners recognize the immense potential of the two compounds we have in the clinic. Their support will enable IVREA to advance these two programs beyond Phase II clinical development," said Michael Kobos, President and CEO of IVREA Pharmaceuticals. With the closing of the financing, Myles Greenberg, M.D., of CHL Medical Partners will join existing Board members, Michael Kobos, CEO, Seth Orlow, M.D., Ph.D., Chair of the Department of Dermatology at NYU, Scott Silverman, D.Phil. and Peter Barrett, Ph.D. of Atlas Venture and Frank Garcia of Easton Capital. Founded in May 2005 by Michael Kobos, Seth Orlow, M.D., Ph.D., Seth Lederman, M.D. and Dr. Maurizio Cattaneo, IVREA Pharmaceuticals is dedicated to developing and marketing dermatology pharmaceuticals. IVREA Pharmaceuticals is developing products having significant medical and patient advantages in the treatment of onychomycosis and acne. The company has offices in Concord and Quincy Massachusetts
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Online Resources Closes Acquisition of Princeton eCom
Representatives of Online Resources Corporation, a leading provider of web-based financial services, announced Wednesday that the company has completed its acquisition of Princeton eCom Corporation on July 3, 2006, and has filed with the Securities & Exchange Commission.
The acquisition price was $180 million in cash, plus an earn-out up to $10 million. Related acquisition financing was also completed on July 3, 2006, consisting of $85 million in long-term debt and $75 million in convertible preferred stock.
Acquisition financing was provided by Tennenbaum Capital Partners, who will be represented on Online Resources' Board of Directors by Steven C. Chang, a partner at Tennenbaum.
Online Resources powers web-based financial services for over 3800 financial institutions, billers and credit service providers. Its proprietary suite of account presentation and payment services are branded to its clients, and augmented by marketing services to drive consumer and business end-user adoption. The Company serves over 8 million billable end-users and processes approximately $75 billion in bill payments annually.
