Online Marketing Firm ReachLocal Files For $100 Million IPO
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ReachLocal, which helps small businesses advertise online, wants to go public. The company plans to raise about $100 milllion in a stock offering, according to a filing with the SEC. ReachLocal offers a suite of services—including search engine marketing, display advertising and analytics—aimed at small businesses who want to target potential customers online. It has a local sales force of more than 500. The filing shows that the company is growing rapidly; Revenue was $146.7 million in 2008, up from $68.4 million in 2007. It posted a net loss of $7 million in 2008, compared to a loss of $2.65 million during the previous year.
The company had raised more than $60 million in funding, including $55.2 million in a round two years ago. As of Sept. 30, it still had $43.7 million of cash in the bank. The filing shows that primary backer VantagePoint Venture Partners controls 53.22 percent of the company (Interestingly enough, Galleon Group, the hedge fund being accused of insider trading, is listed as owning 6.76 percent).
SEE ALSO: Local Advertising Firm ReachLocal Receives a Big $55.2 Million Round
Proceeds are to be used for “working capital and general corporate purposes.”
The filing is yet another indication that the IPO market is set for a comeback after a long lull. Research firm Renaissance Capital runs the numbers and says that ReachLocal is the eighteenth VC-backed company to file to go public over the last two months. By comparison, only eight VC-backed companies did so during the first ten months of the year.
Posted In: Advertising, Local, Money, IPO
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