Photo: Business Insider
[UPDATE: We originally reported that the round was close to finished. Another source says it’s actually now closed.].Back in November we wrote about the new round of financing Solve Media was raising. The round recently closed, and here are the details we’ve heard.
We originally reported an $8-10 million Series B round. We’re now hearing from more sources that the round ended up in the $3-6 million range.
Investors from Solve Media‘s last round are involved again, including First Round Capital and AOL Ventures. New Atlantic Ventures and Bullpen Capital are in too.
In November we reported the pre-money valuation range was between $25 and $40 million. A new source confirms but says the valuation is a “bit ahead of where the company is,” suggesting the higher side of the range.
“Where the company is” is actually pretty high. Two sources tell us Solve generated about $12 million in 2011 gross revenue. Another source says that number is too high because Q4 goals were “badly missed.” Either way, at your average 40/60 advertiser/publisher split, that’s more than most one-year-old startups generate by a mile.
Sources also say other CAPTCHA-type products may be in Solve Media’s future. The startup may spin off a few other advertising products to try and seize a larger market opportunity. Video CAPTCHAs could be one way it will expand. Wouldn’t it be cool to type in the word MAZDA instead of having to watch a 30 second spot?
We reached out to founder Ari Jacoby for a comment about the round. He replied, “Your last write-up was on target. As for growth, we now work with over 3,000 publishers, all on an exclusive basis.”
Jacoby is one of the few founders no one has an ill word to say about. Everyone we’ve spoken with has raved about Jacoby and the young startup’s rapid growth. The last round Jacoby raised was a $4 million Series A in July 2010.