TubeMogul, the Emeryville digital video ad campaign management company led by CEO Brett Wilson, raised $43.8 million in an IPO that had once been hoped to raise as much as $94 million.
It's been a rough second half start Silicon Valley area companies going public, with TubeMogul the latest to raise less than had been hoped in a $43.8 million offering that priced Thursday night.
The Emeryville video advertising technology company had hoped to raise up to $94 million before lowering its targets this week.
It sold 6.25 million shares at $7, with existing shareholders buying more than half of them in the offering. In addition to lowering its target range that had been $11 to $13, the company also got pledges by Trinity Ventures to buy $5 million in shares and Foundation Capital to buy $20 million worth.
TubeMogul is now set to begin trading Friday on Nasdaq with the symbol of TUBE.
The only other Silicon Valley company to launch an IPO in the third quarter was Brisbane-based CareDX, which missed its price range by a wide margin and then saw its stock drop by 9.5 percent on its first day of trading.
There are two more locals expected to go public late next week — Menlo Park-based Intersect ENT and Brisbane-based Atara Biotherapeutics.
Intersect ENT cut its IPO target on Monday to $60 million. The nasal implant maker at one point had hoped to raise up to $80 million.
Atara late last week jumped its IPO target to $92 million from the $50 million it had originally planned to raise. It is a spinout from Amgen, which licensed six drugs to it which target kidney diseases, cancer and other conditions.
In all there were 14 Silicon Valley area companies that had disclosed plans to go public in the second half, with nine of them in the health and biotech sectors that Federal Reservice Chair Janet Yellen warned on Tuesday had seen some "stretched" valuations.
TubeMogul raised more than $53 million in funding since it was founded in 2006. Its biggest VC stakeholders before the IPO were Trinity (26.2 percent of outstanding shares), Foundation (22.4 percent) and Northgate Capital (7.9 percent).
The company's revenue rose by nearly 130 percent to about $22 million in the quarter that ended March 31, a period when its $767,000 net loss shrank by about 60 percent from the prior year.
That's an accelerated rate of revenue growth from fiscal 2013 when it posted $57.2 million in sales, up just 20 percent from 2012. Its $7.4 million net loss in 2013 was more than double the previous year's red ink.
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Cromwell Schubarth is the Senior Technology Reporter at the Business Journal.
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