Mobile ad network Jumptap has raised an additional $27.5 million in venture funding to beef up targeting technology and prepare for a public offering.
This is the first time Jumptap has acknowledged its plans to IPO and the revelation comes just months after the No. 3 player in mobile display ads behind Google and Apple, Millennial Media, went public in March. Millennial's stock has declined to about $13 from its $27 high on its first day of trading. Millennial, which is larger than Jumptap, reported $32.9 million in revenue for the first quarter and is still operating at a loss.
Besides the IPO, Jumtap's latest round will go toward technology development in mobile-ads targeting and integrating third-party data sources into its platform.
Jumptap has generated interest from buyers such as Amazon in the past as new players want to sink their teeth into the fast-growing mobile ads market. Early mobile ad network leaders Admob and Quattro Wireless were snapped up years ago by Google and Apple respectively at top dollar as those companies' looked to catapult their forays into mobile advertising.
Jumptap has raised $121.5 million in funding to date, according to the company. It claims its ad network spans 107 million U.S. mobile users and 156 million globally and that its employee base grew 50% last year.
Participants in the latest round of funding include existing investors WPP, the largest ad agency holding company; General Catalyst Partners; Redpoint Ventures; Summerhill Ventures; and Valhalla Partners; as well as two new investors Keating Capital and an unnamed "large, institutional investor."