Wednesday, October 21, 2009

Southern California Ad Networks & Publishers

ad network and publisher diagram

A stealth internet advertising / publishing renaissance is quietly happening in Southern California 10 years after the dot com bubble burst. Any investor who tells you its hard to build management teams and big companies in Southern California is disconnected from the real markets. Southern California still lacks the big VC and Private Equity funds like Silicon Valley and Boston but entrepreneurs are scrappy here as you see by the list below. Most of these companies bootstrapped themselves and bypassed local SoCal VC firms raising larger rounds with Silicon Valley based mega VC fund after achieving significant revenue growth.

These digital media companies will likely have between $10-250M in annual revenue in 2009 and are great M&A / IPO candidates. The combined list of companies have raised in aggregate of well over $1B of capital and employ 2000+ people in Southern California. These companies will ultimately spawn off new entrepreneurs when liquidity is realized for shareholders. Soon Southern California just might have have a sustainable ecosystem of investors and entrepreneurs to compete with regions like Silicon Valley and Boston. This list is ranked in order of capital raised from investors.
SoCalTech.com and Crunchbase.com were the source of the investment information. See this list of 13 companies and build your own on
Lunch.com

Demandmedia.com - 1333 Second Street, Suite 100 Santa Monica CA 90401 - Owns and operates 1) a network of 65 destination websites 2) a content and social media marketplace connecting content creators, users and publishers on a mass scale and 3) the second largest domain name registrar. Most recently, Demand Media launched 

Livestrong.com in partnership with the Lance Armstrong Foundation.Total Funding: $355.00M Investors: 3i Ventures Generation Partners Goldman Sachs Lance Armstrong Foundation Oak Investment Partners Spectrum Equity Investors

Oversee.net - 515 South Flower Street, Suite 4400 Los Angeles CA 90017 - Operates an advertising network, services for parked domain name holders, and a series of consumer focused web sites. The company uses search engine optimization and other techniques to increase revenue from parked domains and other web sites. Total Funding: $150M Investors: Oak Hill Capital Partners

Specificmedia.com 4 Park Plaza Ste. 1900 Irvine CA 92614  is developing technology that helps online advertisers target audiences through advanced behavioral, contextual, eographic and demographic technologies. 200M Monthly Total Funding: $110M Investors: Enterprise Partners, Francisco Partners, Shepherd Ventures

Hulu.com 2312 W. Olympic Blvd., Los Angeles, CA 90065 is currently the third largest video provider on the web. The site focuses exclusively on professional content and does not take on YouTube directly as a viral video destination. Hulu videos are played in their own embeddable branded player. Content from at least a dozen TV networks and two major film studios is promised. Initial distribution partners include AOL, Comcast, MSN, MySpace and Yahoo. Total Funding $100M Investors: Providence Equity Partners, Disney, Fox.

Adconion.com1322 3rd Street Promenade, 2nd Level Santa Monica, CA 90401 Performance-driven online advertising and content syndication network. Investors: Index Ventures & Wellington Partners. Total Funding: $80M

Veoh.com 10180 Telesis Court Suite, San Diego, CA, 92121 is an Internet TV service that gives viewers the power to easily discover, watch, and personalize their online viewing experience. Total Funding: $69.8M Investors: Intel, Adobe, Shelter, Spark, Goldman Sachs, Time Warner

Reachlocal.com 21700 Oxnard Street, Suite 1600, Woodland Hills CA 91367 Brings order to the fragmented local Internet by connecting advertisers, publishers, and creative solutions providers together on one platform. Wherever customers are online, ReachLocal helps businesses find them with the broadest reach of local digital media, a dedicated force of local Internet Marketing Consultants, and technology that continually optimizes results. Total Funding: $67M Investors: VantagePoint Venture Partners, Rho Capital Ventures, Galleon Special Opportunities Partners, LP

Adknowledge.com 3003 Expositio 1st Floor Santa Monica CA, 90404, (Headquartered in Kansas City, Mo) Performance-based advertising network that utilizes powerful predictive technology to connect advertisers with consumers across multiple channels, including email, search and social networks.Investors: Technology Crossover Ventures. Total Funding: $66.3M

Gorillanation.com 5140 W Goldleaf Circle Floor 3 Los Angeles CA 90056 An online ad sales rep firm represent over 500 leading web publishers and offer integrated media and promotional programs to Fortune 500 brand advertisers. Total Funding: $50M Investors: Great Hill Partners

Rubiconproject.com 1925 S. Bundy Drive Los Angeles CA 90025 - Yield Management Optimization platform, REVV for Publishers™, is engineered to accelerate revenue for premium Web publishers. Total Funding: $42M Investors: Clearstone Venture Partners, Mayfield Fund, IDG Ventures and GE/NBC Universal's Peacock Equity Fund

Openx.com Pasadena CA - Ad server for web publishers. OpenX offers a vast community of publishers comprehensive, customizable and free to use ad serving technology. The OpenX ad server empowers a community of more than 150,000 websites across the Internet with the ability to take control of their ads and maximize their ad revenue and relevance. The OpenX ad server products are translated into 25 languages, used in more than 100 countries around the world, and serve more than 300 billion ads each month.. Total Funding: $31M Investors: Accel Partners DAG Ventures First Round Capital Index Ventures Mangrove Capital Partners O'Reilly AlphaTech Ventures Miller, Jonathan

Break.com 311 North Robertson Dr. Beverly Hills CA 90211 - Break Media is the Internet’s premier entertainment community for men. Break Media consists of wholly owned branded properties such as Break.com, Cage Potato, Chickipedia, Holy Taco, Wall Street Fighter, Screen Junkies and All Left Turns as well as a publisher network, the Break Media Network, that counts over 95 member sites. Total Funding: $21.4M Investors: Lions Gate Entertainment

Mahalo.com 902 Colorado Avenue Santa Monica CA 90401 - Human-powered search engine where results are generated non-algorithmically by a team of profile builders who create pages for search terms. Mahalo includes the most appropriate hand found links and information about for about 10,000 unique queries. Total Funding: $21M Investors: Sequoia

Hydranetwork.com 8800 Wilshire Blvd, 2nd Floor Beverly Hills CA 90211 Performance-based ad network that distributes cost-per-acquisition (CPA) and cost-per-lead (CPL) campaigns through online affiliates. Named by Inc 500 as the fastest growing advertising company in the U.S. in 2009.Total Funding:Unknown Investors: Unknown

Connexuscorp.com 2141 Rosecrans Avenue, Suite 2020 El Segundo CA 90245 Connexus is an online marketer and pay-for-performance ad network. Result of the merger of Vendare Media and Netblue. Investors: Insight Venture Partners & Oak Investment Partners Total Funding: Unknown

6 comments:

  1. Jeff, really helpful info. Like you, I see great potential in the region, these companies are a great example. It is now far easier to bootstrap a company, opening the doors to innovation that would not have had a chance before the bar was lowered. It's a great time to be in the company building space.

    ReplyDelete
  2. The top 4 guys you mention have north of $60MM in funding-- doesn't sound like bootstrapping to me! But hats off to these guys! ReachLocal is one of our competitors.

    For us, bootstrapping is buying used office furniture, sleeping on friend's couches to save money, and using coffee shop wifi.

    ReplyDelete
  3. Most of these companies were bootstrapped in the early stage. The larger rounds were done primarily for expansion and partial liquidity (for founders) when these companies had more than 8+ figures in revenue.

    ReplyDelete
  4. Demand Media acquisition rumor on Tech Crunch. A couple of sources have told us that they’ve recently been talking with Yahoo, AOL and Google about an acquisition, and would like to exit for $1 billion or more.

    http://bit.ly/53F4xh

    ReplyDelete
  5. This is a great reading. Thanks for sharing this information. We have few readers who would like to read this stuff. We will pass it on to our readers for more feedback. We are dealing with seo firms and would like to get feedback from you too. This is a nice postings indeed. Thanking You. santa monica seo

    ReplyDelete
  6. Dennis, in some countries you can't even use coffe shop wifi, it's not allowed to stay more than few hours let's say, without drinking more and more, no money save therefore. Robin from Nottingham UK

    ReplyDelete

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