Contextual ad service developer Quigo Technologies Inc., considered one of Israel’s most promising start-ups, is picking up speed. Sources inform ''Globes'' that the company is readying for a Nasdaq IPO, which will probably take place in early 2008. The sources added that the company has raised $30 million from Institutional Venture Partners, at a company value of $250 million, as part of the preparations for the offering.
Quigo declined to comment about either the planned offering or the fundraising.
Meanwhile, Quigo has signed an exclusive, multi-year partnership with Time Inc., which will use the company’s AdSonar online advertising program at Time’s websites. Quigo chief revenue officer Henry Vogel said, “The companies estimate ad revenues will top $100 million over the first three years of the partnership.”
Institutional Venture Partners, which manages $2.2 billion, invests in late-stage start-ups in the fields of landline and mobile communications, internet, new media, and enterprise IT products. The fund’s exits include LSI Logic Corporation (NYSE:LSI), Polycom Inc. (Nasdaq:PLCM), and Juniper Networks Inc. (Nasdaq:JNPR).
Quigo develops technologies and products for advertising search engines and content focused ads on websites. The company’s products automatically generate links between relevant content and advertisers’ websites. An important advantage of the company’s platform is that it enables advertisers to select which of its ad pages it wants to be seen.
Quigo is considered a direct threat to the corresponding text-based advertising activity by Google Inc (Nasdaq:GOOG) and Yahoo! Inc. (Nasdaq:YHOO). Quigo has a 10% share of the market, but has won large clients and forced Google to change its tactics in the sector. Contextual ad revenue totaled $2 billion in 2006, 13% of all online advertising.
Published by Globes [online], Israel business news - www.globes.co.il - on June 28, 2007
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