Digital marketing company Rocket Fuel has secured $50m in new financing. The round was led by existing investor Northgate Capital, and included new investors Summit Partners and Cross Creek Capital, the private equity affiliate of investment manager Wasatch Advisors.
Existing investors Nokia Growth Capital and Mohr Davidow Ventures also participated, as did Comerica Bank. Total Rocket Fuel funding now exceeds $76m.
Between 2009 and 2011, the company’s compound annual growth rate exceeded 325 per cent; in 2011 alone, the company grew revenue to $45m and reached EBITDA profitability in Q42011.
George John, CEO of Rocket Fuel, said, “This financing will add an important layer of financial strength and provide the foundation for our long-term growth plans. We are also extremely pleased to have Karey Barker from Wasatch’s Cross Creek and Greg Goldfarb from Summit Partners join as board observers. Karey and Greg are well-known and well-respected in the investing community, and we’re excited to add their IQ and experience to our boardroom.”
“Rocket Fuel has proven itself as the standard bearer for effective, next generation digital advertising,” added Tommy Vardell, managing director at Northgate Capital. “In a dynamic and ever-changing digital marketplace, the rapid adoption and retention of Rocket Fuel’s solutions by top-tier advertisers are a testament to the executive team’s nuanced understanding of digital marketing and the sophistication of Rocket Fuel’s ad delivery services. We are happy to be a part of such a progressive company that is able to dynamically optimize advertising for display, video, mobile and social media simultaneously.”
The company said it will use the infusion of new capital to accelerate its aggressive growth strategy. It also plans to expand into more international markets and invest in hiring, technology, and business development.
“We are pleased to support Rocket Fuel’s escape velocity growth and provide capital to accelerate both product upgrades and geographic expansion,” said Greg Goldfarb, Managing Director at Summit Partners. “And as a multi-stage investor, we are excited about the opportunity to provide additional capital in the future as the company scales and potentially finds acquisition targets.”
With more than $3bn in committed capital Northgate Capital invests both through funds of funds vehicles and direct investment vehicles.
Copyright © 2012 AltAssets