New York-based ad tech startup MediaMath is considering raising a big round we’ve heard from multiple industry sources.One source called it a “crazy round,” pegging it at $100 million, but another source familiar with company says that’s way too high. (Yet another source suggested it will settle around $50 million.)
We couldn’t get an exact number because it doesn’t look like MediaMath knows an exact number right now. It hired Lazard for consultation and it’s trying to figure out how much it can raise at a valuation it’s happy with.
The new money would be used for making acquisitions.
MediaMath is a digital media buying platform. It’s often called a “Bloomberg terminal for marketing.” In July AdAge had a simple description of the business: “[MediaMath] licenses its technology to top agency holding companies and media buyers such as Publicis, WPP, Cadreon and Starcom so they can bid on ad space across exchanges such as Yahoo’s Right Media, Google’s AdEx and Microsoft’s AdECN.”
Tens of millions of dollars in transactions are flowing through MediaMath. We’ve be told the annual run-rate for gross revenue for is north of $250 million. Update: Another source in the industry knocks down this number and says MediaMath is closer to a $100 million revenue run rate. What it gets to keep varies from partner to partner, but on average we hear it keeps ~25% of the gross revenue.
While MediaMath is growing, and doing well, one source said raised some concern about the fact that it doesn’t have an obvious exit path, other than an IPO which would be years away. This source says it’s a distant player, trailing Turn, Google, and AppNexus.
To date, MediaMath has raised over $40 million in funding, with its most recent round closing in July.
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