Mobile digital advertising startup IronSource raises over $400 million from investment powerhouse CVC Capital Partners. The firm is now valued at slightly over $1 Billion.
Internet advertising startup IronSource has reportedly raised over $400m in fresh capital from the prestigious investment firm CVC Capital Partners which has in exchange acquired a 25% minority stake in the firm. As indicated by sources, the firm is now valued at around $1.55 Billion which represents a coming of age for the Israeli technology company.
Before now, the company has raised capital from various partners who enabled it to gain a foothold in the mobile app monetization market. From Viola ventures, 83 North and veteran Russian-born British-American investor Leonard Blavatnik, the firm has been able to steadily increase its offerings to content publishers and developers who have taken advantage of the core focus of the company’s strategy in mobile markets.
Founded by Tomar Bar-Zeev in 2009, the advertising firm has had to compete in the big leagues with popular technology giants for advertising revenues. The great thing, however, is that the mobile offerings of the firm have made it do quite well in this niche thus giving it a competitive edge in an industry where big technology companies tend to do everything and own just about everything.
In an expected development, this indicates the emergence of smaller digital advertising startups who are challenging the status quo in a David-vs-Goliath scenario. While the final match-up may still be some way off, it is an indication that the mobile market is fast becoming the primary market to compete in as retail markets are now more reliant on cloud services and mobile apps more than ever before.
IronSource is already known for its offerings in mobile video, mobile gaming and app offerings which enable advertisers to reach mobile markets at a depth previously not seen before. This has already been reflected in its financial position as its EBITDA of $150 million indicates projected revenues for about $1 billion this year alone.
Daniel Pindur, Partner at CVC Capital Partners said:
“We are delighted to be partnering with such an innovative and exciting technology business.
The investment in IronSource is a unique opportunity to support a well-respected founder-led organization to accelerate its growth. We look forward to working with Tomer Bar Zeev and his team to take the company to the next level.”
Sebastian Kuenne, Managing Director, CVC Growth Partners also said:
“We are very excited about CVC Funds’ first technology deal in Israel. Israel is a hub for leading-edge technology companies and IronSource is a prime example. We are excited by the opportunity to partner with IronSource’s founders to continue to provide leading technology solutions to its customers.”
With over $129 Billion in investment funds in different portfolios, CVC as an investment partner possesses the ability to see into the future by peering at tomorrow’s technologies today so to speak.
Meanwhile, Israeli technology startups are also becoming quite significant in the technology space with Taboola and Outbrain both Israeli firms announcing a $2 billion merger earlier this week.