Category: Adtech

Outbrain raises $200 million ahead of its IPO



Outbrain, an adtech company that provides clickbait ads below news articles, has raised $200 million in funding — Outbrain didn’t disclose the valuation of the company for this deal. The Baupost Group is investing in the company — it’s a Boston-based hedge fund. Outbrain filed for an initial public offering just last week. Today’s funding round should be the last traditional private investment round before going public.

If you’re not familiar with Outbrain, you may have seen its content recommendation widgets on popular news websites, such as CNN, Le Monde and The Washington Post. They mostly feature sponsored links that lead to third-party websites.

“We are excited to announce this investment from The Baupost Group, who share our vision and commitment for our business, our team and our future prospects” co-CEO David Kostman said in a statement.

Outbrain is often compared with its rival Taboola. While both startups planned to merge at some point, they had to cancel their merger. Taboola already went public after merging with a SPAC — a special purpose acquisition company. Taboola shares started trading last week.

In its IPO filing, Outbrain reported $767 million in revenue for 2020 and $228 million in revenue for the first quarter of 2021 alone. In 2020, Outbrain managed to generate $4.4 million in net income. During Q1 2021, the company reported $10.7 million in net income.

“We proudly lead the recommendation space we created. We have bold plans for the future to continue delivering critical (Read more...)

Outbrain raises $200 million ahead of its IPO



Outbrain, an adtech company that provides clickbait ads below news articles, has raised $200 million in funding — Outbrain didn’t disclose the valuation of the company for this deal. The Baupost Group is investing in the company — it’s a Boston-based hedge fund. Outbrain filed for an initial public offering just last week. Today’s funding round should be the last traditional private investment round before going public.

If you’re not familiar with Outbrain, you may have seen its content recommendation widgets on popular news websites, such as CNN, Le Monde and The Washington Post. They mostly feature sponsored links that lead to third-party websites.

“We are excited to announce this investment from The Baupost Group, who share our vision and commitment for our business, our team and our future prospects” co-CEO David Kostman said in a statement.

Outbrain is often compared with its rival Taboola. While both startups planned to merge at some point, they had to cancel their merger. Taboola already went public after merging with a SPAC — a special purpose acquisition company. Taboola shares started trading last week.

In its IPO filing, Outbrain reported $767 million in revenue for 2020 and $228 million in revenue for the first quarter of 2021 alone. In 2020, Outbrain managed to generate $4.4 million in net income. During Q1 2021, the company reported $10.7 million in net income.

“We proudly lead the recommendation space we created. We have bold plans for the future to continue delivering critical (Read more...)

With $62.5M in debt financing, Road Runner Media puts digital ads behind commercial vehicles



If Southern California-based Road Runner Media succeeds, you’ll start seeing a lot more ads while you’re driving.

That’s because the startup is placing digital screens on the back of technicians’ vans, delivery vehicles, buses and other commercial vehicles. Those screens can show both ads and serve as a brake light — according to founder and chairman Randall Lanham, the brake light functionality is required if you’re putting a sign on the back of a vehicle.

“The way we look at it, we are a digital brake light,” Lanham said. Yes, the brake light is showing ads, but “the driver touching the brakes interrupts the ad.” (The sign can also indicate turns, reversing and emergency flashers. You can see a mock-up ad in the image above, and real footage in the video below.)

To pursue this idea, Lanham (who described himself as a “recovering attorney”) enlisted Chris Riley as CEO — Riley’s experience includes several years as CEO of PepsiCo Australia and New Zealand. And the company announced this week that it has secured $62.5 million in debt financing from Baseline Growth Capital.

The idea of putting ads on moving vehicles isn’t new. There are, of course, ads on the tops of taxis, and startups like Firefly are also putting digital signage on top of Ubers and Lyfts. But Riley said Road Runner’s ruggedized, high-resolution LCD screens are very different, due to their size, quality and placement.

“[Taxi-top ads] (Read more...)