As an entrepreneur or a small business owner you should love this recent sale. Here is a company that raised an undisclosed amount of seed capital, $6.5 in an A round in 2011, $12 M in a B round in 2012. In 2013 they sold for $350 Million, in September 2013 (just a couple days ago). That is a company that took only 3 years and just over $18.5 million to grow itself into a $350 valuation. And not an ‘on paper’ valuation but a ‘someone just paid them’ valuation. Those are two totally different things as we all know. Well done MoPub, let’s recap that timeline:
2010 – seed funding
2011 – A funding $6.5 Million
2012 – B funding $12 Million
2013 – sold for $350 Million
MoPub is MoTastic – but What do they Do?
Entrepreneurs should all be in awe with what MoPub did, the sale that is. But now let us look at what they do. They are in the mobile industry, that narrows it down right? Okay, so they are in the business of helping mobile application publishers mange their ad inventory. As an example let’s say that you have a mobile application that allows users to quickly perform technical analysis of stocks on their phone and you give it away for free. Now you want to make money with the application, much like shareware producers used to make money with their free software years ago. How? They embedded advertisements into their software, just as those that create mobile applications may embed advertisements in their applications.
MoPub helps you, the publisher of the application, generate revenue from the ads. Remember the inventory of advertisements in applications does not sit on a shelf. Advertising impressions are lost every second unless they are sold and served. MoPub allows for real-time bidding in their marketplace for ads in your application.
Good Management Team and Investors always help
MoPub was founded by former AdMob and Google team members. They are backed by Accel Partners, Harrison Metal Capital, and Jafco Ventures. They have offices in San Francisco and New York City.
Let’s all try to be MoTastic