Israeli startup Outbrain, whose main product is a content recommendation service, expected to go public at $1 billion value

Israeli startup Outbrain expected to go public at $1 billion value

The firm, whose main product is a content recommendation service, is expected to try to raise some $200 million to $300 million.

By Orr Hirschauge | Sep. 9, 2013 | 11:36 AM

Israeli software company Outbrain is nearing an initial public offering. The firm, whose main product is a content recommendation service, has started preparing a prospectus for the IPO at a company value of about $1 billion, and is expected to try to raise some $200 million to $300 million. Outbrain’s technology is used by websites to recommend other content and links the reader might find interesting using. the idea is to keep readers on the site and increase traffic to sites – and in doing so increase revenues. Outbrain also allows advertisers to distribute marketing content alongside the recommendations.Outbrain has revenue-sharing agreements with a number of very high-traffic sites such as USA Today, Boston.com, Chicago Tribune, Boston Globe, Newsweek, The Street, Washington Post, Slate, Daily Beast, CNN and Fox News.

The company completed its fourth fund raising round in December 2011, in which it raised $35 million at a company value of $300 million to $350 million. That brought the total investment in the firm to $64 million. The main investors in Outbrain are Carmel Ventures, Index Ventures, Gemini Israeli Fund, GlenRock, Rhodium, and Lightspeed Venture Partners. Private investor Zohar Gilon participated in the second round of funding.

Outbrain was founded in late 2006 by Yaron Galai, one of the founders of Quigo, which was sold to AOL for $363 million in 2007; and Ori Lahav, formerly of Shopping.com. The company has its research and development center in Netanya and its headquarters is located in New York.

In August, Outbrain’s systems were exploited by the Syrian Electronic Army to hack websites of the Washington Post, New York Times, Time Magazine and CNN.

About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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