Domain holding company Demand Media has taken $100 million Series C funding in a round led by Goldman Sachs that included 3i Group, Generation Partners, Oak Investment Partners and Spectrum Equity Investors. The new round takes Demand Media’s total funding to the rather extraordinary figure of $320 million and values Demand Media at $1 billion.
Demand Media is primary a domaining company that is focused on building a profitable domain portfolio which includes everything from generic names through to typos. Like a number in this business lately, Demand Media has started a value adding program for their domain portfolio, having launched social network Me.TV in May. Demand Media is headed by former MySpace CEO Richard Rosenblatt.
Whilst often being tarred with the domain hijacking brush, domaining has become a big business with serious money over the last couple of years. The sale of Business.com for $350million has seen renewed interest from tradition investors who are looking for similar flipping opportunities.
But Demand Media is also buying other online properties, including pure content plays. They have new competition from Ross Levinsohn and Jonathan Miller, who recently created their own fund, backed by General Atlantic, to acquire some of the same properties that Demand Media will be interested in.
(via PE Hub)