Venture capital-backed next-level internet domain registry Donuts has picked up a second round of funding at double the valuation of its Series A.
The company did not reveal the size of the Series B investment, but gathered more than $100m from a host of backers for its first institutional investment round last June.
Generation Partners led the latest round, while additional financing was provided by Columbia Partners Private Capital to complement an existing senior line from Comerica Bank.
Donuts has made more than 300 applications for new top-level domain names to add suffixes to the 22 currently allowed, such as .com, .net and .org.
Donuts CEO and co-founder Paul Stahura said the additional capital was targeted toward securing new generic top-level domains (gTLDs) in the coming months, when applicants are slated to resolve “contention sets,” an industry term for multiple applications for the same gTLD.
He said, “We intended from the beginning to secure the gTLDs for which we applied.
“We enjoy tremendous support from our stockholders and lenders. This was an oversubscribed round that nearly doubles our capacity to compete.
“Our investors believe as strongly as we do that new gTLDs will bring relevance and specificity to registrants who have few usable choices today for Internet identities.
“This additional capital supports that belief, and we intend to deploy it to bring new gTLDs to market.”
Generation Partners managing director John Hawkins said, “Capital is a critical element of the approaching phase of the new gTLD program.
“Donuts applied for more than three times the number of gTLDs as the next largest applicant, and the company’s investors intend for Donuts to have what it needs, or even more than it needs, to continue its leadership position.”
The previous investment in Donuts was led by Austin Ventures and backed by firms including Adams Street Partners, Emergence Capital Partners and TL Ventures.
Copyright © 2013 AltAssets