Mobile advertising network Mojiva has raised another $7 million in funding from current investors in the company, part of a larger raise the company is in the process of closing to hire more people, build more data layers into its network, and expand its new tablet advertising network. The amount was first revealed in a Form D filed with the SEC, and we have confirmed the details with David Gwozdz, the CEO of the company.
He tells us that “this Form D is the tip of the iceberg, the first bit to a larger amount to be drawn as we need the funds along the way.” The company, which he says is currently growing at a rate of 100% per year and is approaching break-even on its balance sheet, has also closed a credit line with SVB bank to allow it to “finance additional working capital.” The amount of that credit line was not disclosed.
Most recently, Mojiva had raised a $25 million venture round in July 2011, with participation from Shamrock Capital Advisors, Bertelsmann Digital Media Investments and Pelion Venture Partners. Mojiva’s total funding to date including the new $7 million is $42.3 million. Other investors include Vaux les Ventures, which had backed Mojiva’s seed round. Alongside its own Mojiva and Mocean mobile marketing brands, Mojiva is also a strategic partner of Microsoft’s for is mobile advertising efforts.
Mobile advertising networks have been riding on the wave of smartphone growth, and signs are pointing to spend growing rapidly from a less than two percent of all ad spend this year.
Companies like Facebook have been fuelled by its encouraging prospects in mobile, and Google has been pushing the “multiscreen” experience, claiming that the recent Presidential election in the U.S. was the first to witness “multiscreen persuasion” among voters — another sign of how marketing and advertising are shifting to wireless devices. Other competitors like Millennial Media have IPO’d, with others like Jumptap preparing a similar step up.
Gwozdz says that increased interest has been felt at Mojiva, too. With growth of 100% per year and the company approaching break-even in terms of profitability, it will be using the new funds to meet demands.
“Funding is to be used to continue to expand and hire against [our] core ad platform business, which has added several very large customers recently and to build additional data layers into our ad network, and the newly announced tablet network,” he says. “More big companies are seeking mobile ad-tech initiatives these days, we seem to be involved in most every conversation, so our focus remains on building the company value to benefit our shareholders.”
The new tablet network launched only a month ago, but I took the opportunity to ask how it’s been progressing so far. He says the company has “seen an increasing number of inbound inquiries from strategic partners in recent months” with the proposals for advertising “so varied we haven’t sorted out which serves the company best.” In other words, it sounds like Mojiva is still working out what a tablet ad platform may mean in the longer term, whether clients will be asking for platform-specific or content-specific ad buys, and subsequently how Mojiva will incorporate that into its products.
Gwozdz says the current Form D “represents about 40% of the capital available to us today, if we so choose.” But he hasn’t given a valuation of the company as yet.