AdRoll Raises $70 Million, Led by Foundation CapitalSarah Frier
AdRoll.com, which makes technology that targets advertisements to consumers using mobile devices, raised $70 million from private investors as publicly traded competitors languish.
The company is on track to book $150 million a year in revenue, based on its performance in the past three months, San Francisco-based AdRoll said today in a statement. Foundation Capital, a high-growth investment fund, is leading the round.
AdRoll’s funding comes as other public advertising technology stocks remain in a slump. Rocket Fuel Inc., which nearly doubled in a September initial public offering, has slipped 42 percent this year. Millennial Media Inc., Tremor Video Inc. and YuMe Inc. are also among ad-tech companies struggling in public markets. Yet AdRoll has seen its revenue and customer base grow, Chief Executive Officer Aaron Bell said in an interview.
“At some point in the future we would aspire to go public, so we do pay attention to the markets,” Bell said. “As the ad space becomes more complex, we think the winner will be the one with the most useful platform.”
AdRoll, which now serves 15,000 clients, allows companies to send mobile advertisements to potential customers who already have shown interest in their websites. The ads can be served across devices, mobile applications and the mobile Web.
The company plans to use the financing to expand internationally and hire more engineers to build out its product, Bell said. The company previously had raised $19 million in backing.
Institutional Venture Partners, Northgate Capital, Performance Equity Management and Glenmede Investment Management invested in the round, along with earlier investors Merus Capital, Accel Partners and Peter Thiel, the company said. Eric Liaw of IVP will join AdRoll’s board.