Don’t let the talk about an ad tech slump fool you. Companies in the Ad network and exchange space have been seeing a significant uptick in venture capital funding. In fact, ad network and exchange startups raised more money from VCs, corporations and angels in the last 4 quarters than any other four quarter period in the past 5 years recording $518M across 54 deals from Q2’13 – Q1’14. The tallies marked 89.2% YoY funding growth and 20% YoY deal growth. Q3’13 and Q1’14 were the first quarters with over $150M in funding since the $288M Q1’11.
Early-Stage Accounts for Nearly Half of All Deals
Early-stage (Angel – Series A) financings accounted for 48% of all venture deals into ad networks/exchanges over the past two years. Series A deal activity saw 2 of the top 4 largest financings over the past two years with Avazu’s March 2014 $48M round.
Series C companies saw 400% year-over-year deal growth, the largest of any stage. The largest fundings in this time period were a January 2014 $20M Series C-II for email ad platform company LiveIntent, as well as a $20M July 2013 financing for audience targeting, optimization, and reporting startup Collective.
California takes 40% of Ad Exchange Deals
Deal share was relatively evenly spread between Silicon Valley, Southern California, and NYC, with those three accounting for 58% of all deals over the past two years. Southern California saw the largest increase of any region year over year while both Silicon Valley and Massachusetts saw their number of deals fall by 20% or more.
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