Accoona, a Jersey City, N.J.-based Internet firm, is looking to raise $81 million through an initial public offering. Accoona describes itself as a company with three main businesses: Online lead generation, a proprietary search engine and e-commerce. Six sites, including ButterFlyPhoto.com, BestBuyPlasma.com, PlasmaBay.com and NYLiving.com, accounted for 99% of its revenue last year.
More importantly, Accoona is a financial disaster. In Q1 2007, the company lost $14.8 million on $37.5 million of revenue. Put differently, it lost about $0.40 on every $1.00 of product it sold. In an industry in which most companies with viable business models have long since turned profitable, and in a stock market headed to hell in a handbasket, we won’t be touching this one with a 10 foot pole. S-1 via Crain’s