Private Company Valuations: AdMob, Inc.

Posted By Justin Byers, Lead Business Intelligence Analyst on June 25, 2009

Ad revenue, both online and mobile, is still a viable part of income for many companies. There are some very large players in this market, and with the influx of apps for the iPhone and other mobile devices, this seems to remain a volatile sector. This week we are going to take a look at one of the companies involved in the mobile advertising sector.

Admob, Inc. was founded in 2006 and is headquartered in San Mateo, California. The company states on its website that it is “…the world’s largest mobile advertising marketplace.” Earlier this year in a blog posting, Omar Hamoui the CEO & Founder of Admob, announced that the company had closed on an additional $12.5 MM extension of a previous round of financing that was taken in late 2008. This would bring the total for the Series C financing to approximately $28.2 MM. Participants in the Series C round were Draper Fisher Jurvetson, Sequoia Capital, Northgate Capital, and Accel Partners.

The Deal Terms of this round were:

Implied Valuation Ticker^*

Implied Valuation Ticker^*

The Valuation Ticker is a venture capital valuation tracking tool that utilizes the average daily close prices of public companies in particular industries. Each of these companies received venture capital or private equity funding prior to their IPO.

Utilizing averages from 1999 to present, these daily figures are then applied to the most recent post-money valuation of a private, venture-backed company within the same industry, as calculated by VC Experts, to simulate the movement of that company’s valuation on a daily basis.

Additional data is utilized as a comparative measure, including the NASDAQ and S&P 500 indexes. With this tool, VCs, hedge fund managers, investment bankers and other investor groups can create a bucket of comparable analysis, as well as determine potential entry points when to go public.

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