- OpenX Closes $10 Million Series C Funding


- OpenX Closes $10 Million Series C Funding

Press Releases

May 26, 2009

OpenX Closes $10 Million Series C Funding

Funding Comes After Company Experiences Major Growth Across All Business Lines;
Launches Innovative New Products and Services for Web Publishers and Advertisers

PASADENA, Calif., May 26, 2009 OpenX Technologies, Inc. (OpenX), the world’s leading independent ad server for web publishers, today announced it has completed a $10 million Series C funding round that brings the total investment in OpenX to more than $30.8 million. DAG Ventures led the round and existing investors Accel Partners, Index Ventures, Mangrove Capital, First Round Capital and Jonathan Miller, the company’s board chairman, all participated. OpenX will use the additional funds to further expand its market-leading advertising technology products and services and to rapidly accelerate the growth of the recently launched OpenX Market (Market), the company’s unique new monetization platform. OpenX, then known as Openads, raised $5 million in its Series A financing, which closed in May 2007; it raised $15.5 million in its Series B financing, which closed in December 2007.

RAPID PRODUCT ADOPTION

OpenX has experienced tremendous growth across all of its business lines since its Series B round. Global adoption of both versions of OpenX Ad Server has been particularly strong. From December 2008 to April 2009, the monthly run rate of impressions for the new OpenX Hosted (Hosted) product grew more than 500% to 7.5 billion impressions. The number of Hosted sign-ups now exceeds 10,000 in just six months since launch. OpenX Download, the original version of the company’s open source ad server, has also grown significantly. The latest version of the software, OpenX 2.8, has more than 3,000 active users and a monthly run rate of more than 10 billion impressions in just six weeks since launch.

OpenX Market, the first simple and neutral exchange for all classes of buyers and sellers of online advertising, has also experienced major growth. The Market already has a monthly run rate of more than two billion impressions, an increase of more than 100% since its April 2009 launch.

MASSIVE GLOBAL FOOTPRINT

OpenX is the world’s leading independent ad server for web publishers. The company’s community of more than 38,000 publishers powers more than 150,000 websites across the Internet. Using the company’s software in either its hosted or downloadable version, OpenX publishers generate more than 300 billion ad impressions monthly. OpenX products are now used in more than 100 countries and are translated into twenty-five languages by community contributors.

RAMPING REVENUE

As the company’s ad serving products are increasingly embraced by publishers and advertisers, the company’s revenue has begun to ramp. The company currently has four revenue streams: (1) professional services for publishers; (2) premium support packages; (3) premium Hosted packages; and (4) OpenX Market.

EXCEPTIONAL TEAM

OpenX’s management team has undergone a major transformation since the Series B round and the April 2008 appointment of former Yahoo! senior vice president Tim Cadogan as the company’s chief executive officer. In the year since his arrival, Mr. Cadogan has assembled an exceptional team comprised of industry experts from firms such as Yahoo!, Overture, Google, Adknowledge and Fair Isaac. The OpenX team members have decades of combined experience building the leading online advertising marketplaces and they are bringing that experience to bear as they develop OpenX’s products, especially OpenX Market.

“OpenX is demonstrating that combining a unique business model with a widely adopted open source product can provide the basis for a company of significant scale,” said Nick Pianim, managing director, DAG Ventures. “We think that the 300 billion impressions which flow through the company’s software monthly will allow the company to rapidly grow the Market, creating enormous value for everyone in the OpenX ecosystem in the process. Moreover, the broad, worldwide use of the company’s products and services demonstrates that there is a clear need for an independent alternative technology platform in the online advertising space and OpenX is poised to take full advantage of that need.”

“We’re extremely pleased with the progress that OpenX has made over the last year and we’re gratified to have the support and funding of such a strong investor base,” said Tim Cadogan, chief executive officer, OpenX. “The new investment will allow us to both accelerate the growth of OpenX Market and also expand our technology products and services as we work to help publishers maximize their revenue and advertisers gain access to the rich primary inventory available through the vast OpenX community. On a more general note, our progress is testament to the fact that, even in the midst of a tough economic climate, there is huge opportunity for companies that creatively address large challenges such as those currently facing online advertising.”

About OpenX

OpenX is the world’s leading independent ad server for web publishers. Building on the strength of our open source heritage, we offer our community of publishers comprehensive, customizable and free to use ad serving technology. OpenX Ad Server empowers our community of more than 150,000 websites across the Internet with the ability to take control of their ads and maximize their ad revenue and relevance. OpenX Ad Server products are translated into 25 languages, used in more than 100 countries around the world, and serve more than 300 billion ads each month. OpenX Market is the company’s unique monetization platform and is designed to help publishers maximize the price of their inventory and to help advertisers much more effectively target where their ads are served. The Market uses a real-time auction marketplace in which multiple classes of buyers bid for each impression provided by OpenX’s vast publisher base.

OpenX Technologies, Inc., a wholly owned subsidiary of OpenX Limited, is based in Pasadena, California, with offices in London and Poland. OpenX is backed by leading investors including Accel Partners, Index Ventures, DAG Ventures and O’Reilly AlphaTech Ventures. For more information, please visit: www.openx.org.

OpenX is a trademark of OpenX Limited.
OpenX Media Contact: Al Duncan 1.626.466.1142 media@openx.org