The Private Equity Data Center Buzz

Private Company Valuations: CrossLoop, Inc.

Thu, 02 Jul 2009 00:00:00 +0000

There have been a few IPOs in the last few months. In the spirit of the IPO for LogMeIn.com, this week we are going to take a look at a similar company that is still in the early stages of development.

CrossLoop, Inc. is headquartered in Monterey, CA. The company's product is a free desktop sharing software application which allows users to remotely collaborate with others over the Internet. The company closed a Series B round in late 2008 for approximately $6 MM. Some of the participants in the round were Venrock Associates and El Dorado Ventures. The Deal Terms for this latest round were:

Private Company Valuations: AdMob, Inc.

Wed, 24 Jun 2009 00:00:00 +0000

Ad revenue, both online and mobile, is still a viable part of income for many companies. There are some very large players in this market, and with the influx of apps for the iPhone and other mobile devices, this seems to remain a volatile sector. This week we are going to take a look at one of the companies involved in the mobile advertising sector.

Admob, Inc. was founded in 2006 and is headquartered in San Mateo, California. The company states on its website that it is "...the world's largest mobile advertising marketplace." Earlier this year in a blog posting, Omar Hamoui the CEO & Founder of Admob, announced that the company had closed on an additional $12.5 MM extension of a previous round of financing that was taken in late 2008.

Private Company Valuations: Ze-gen, Inc.

Thu, 18 Jun 2009 00:00:00 +0000

Where can all the waste go? Waste that is the result of construction and demolition projects. Waste that would, in the past, sit in a landfill and over time decay, or not, depending on what it was. There are several new companies that have seized opportunity and created the technology to make the most of this waste. This week we are going to take a look at one of these companies and their latest round of financing.

Private Company Valuations: Green Dot Corp.

Thu, 11 Jun 2009 00:00:00 +0000

There has been an increase in the methods of payment for goods. One of the popular methods is the prepaid debit card. Ever wondered where they come from or how long they have been around? Green Dot Corporation states on their website that they invented the retail prepaid debit card service. There have been many followers, and more and more companies are issuing rebates and credits to customers via this method of payment. I recently received one from a phone carrier for a rebate on a new phone. This week we are going to take a look at Green Dot Corporation's latest round of financing.

Private Company Valuations: Deeya Energy, Inc.

Thu, 04 Jun 2009 00:00:00 +0000

Clean Technology is still receiving a fair amount of money from investors this year. Although we are not seeing as many $100 MM investments into a single company, there are still several higher 8 digit deals being done. This week we are going to take a look at one of these Clean Technology companies that has received one of the largest investments, so far this year, for this sector.

Private Company Valuations: Facebook, Inc. (Q2 2009)

Thu, 28 May 2009 00:00:00 +0000

Everyone has been speculating about the additional funds that Facebook, Inc. has been rumored to be seeking, and everyone wanted to know at what valuation. I guess the wait is over…$200 MM from a Russian investment group? That is the latest round of financing for Facebook, Inc. Many people have already seen the latest stories this week and some sat in on the call that discussed this latest investment. What will these funds do for the company? Previous investment rounds were quite “company friendly” pertaining to the terms. Were the terms the same for this round, or did they become more “investor friendly”? By comparison, be sure to review our previous coverage of the Facebook financing rounds. This week we are taking a look at the latest round.

In a press release posted earlier this week, Facebook, Inc. announced that it was receiving a $200 MM investment from global internet investment group Digital Sky Technologies (DST). DST has offices in Moscow and London, and per their website, they have invested over $1 BB in over 30 companies from 2005 to 2009. This $200 MM amount invested represents a 1.96% equity stake in the company at a $10 BB valuation. (Note that this valuation is based off of the preferred share price.) Along with the $200 MM investment, DST is said to be planning to offer to purchase a minimum of $100 MM worth of Facebook common stock from existing common stockholders. The Deal Terms of this round were:

Private Company Valuations: SoonR, Inc.

Thu, 21 May 2009 00:00:00 +0000

Just how many applications do you think the iPhone will have by 2010? Of those, how many do you think current business professionals who have an iPhone utilize as part of their daily routine? Numerous companies have been able to secure venture funding that develop mobile applications. In this week's buzz, we are going to take a closer look at one of these companies and how their venture financing was structured.

SoonR, Inc. is based in Silicon Valley and provides mobile access to PC-based information. The application enables its users to search, read and send email, schedule meetings, manage contacts and share files instantly. Most recently, the company received $3 million in a Series C round of financing. Investors in this round included Intel Capital, Clearstone Venture Partners (FKA: idealab! Capital Partners), Cisco Systems, Inc. and Sand Hill Capital.

What Do Those Terms Mean? - Part 2

Wed, 13 May 2009 00:00:00 +0000

A couple of weeks ago, the NVCA and Thomson Reuters released Q4 2008 Venture Capital Performance data. This data, coupled with the fact that 10 year performance figures will no longer include 1999 as part of the equation, will alter benchmarking statistics used by investors in their due diligence efforts. It could also lead to the emergence of some “investor friendly” terms that might generate a sparring match at the negotiation table.

Last week, we discussed the meaning of some common terms found in venture deals and the potential impact they carry for your company when seeking venture capital. In this edition of the Data Center Buzz, we are furthering that discussion by taking a closer look at some additional terms.

What Do Those Terms Mean? - Part 1

Thu, 07 May 2009 00:00:00 +0000

In today's venture financing environment, knowledge of the deal process is vital to ensuring fair business practice between company founders and investors. Many times, deal terms are often agreed to by company founders without a clear and concise understanding of what the terms actually mean to their company.

One of the most common remarks we get about our database is "That information is available to me?" Some people are merely not aware that this amount of light can be revealed about a company's specific terms. We now track approximately 13 different specific deal terms, as discovered by our analysts when pouring over a company's regulatory filings. In addition, the documents that supply our analysts with this data are made available to our subscribers to validate the information being provided.

In this week's buzz, we are looking at a couple of terms that, given the current state of venture funding, should be more prevalent in deal's to come and what those terms mean should you see them in a term sheet.

Private Company Valuations: Influenza Research and Prevention

Thu, 30 Apr 2009 00:00:00 +0000

Many of the latest headlines are focusing on the swine flu, as they should since it is a great concern to us all. This strand of influenza is being tracked very carefully as it moves its way into the U.S. This week we are going to take a look at a couple of companies that we have in the database that play a part in helping prevent and treat influenza.