Digital ad buying technology company MediaMath has raised a $73.5 million, the company announced today. On top of the investment, MediaMath increased its debt to $105 million, bringing the total raise to over $175 million.
The massive round comes at a moment of turbulence for ad-tech stocks, with many now in free fall after a hot IPO season in late 2013. The round could be looked at in two ways: either investors stating they believe MediaMath's business is a cut above. Or an attempt to put off an IPO in the hope that the stock market will eventually right itself.
"We have been looking to back a leader in the digital marketing space for quite some time," said Dan MacKeigan, partner at Spring Lake Equity Partners, which led the round. "We are excited to support the company through this next phase of growth."
The money not only gives MediaMath the ability to wait out the market, but also some firepower if it wants make an acquisition, or two. The company is willing to spend to solidify its position in mobile, as evidenced by its acquisition of cookieless targeting technology company Tactads in April.
Many ad-tech companies which came up in a time when desktop was dominant, MediaMath included, are struggling to adapt their businesses to a world where mobile media consumption is booming. Mobile makes up 10% to 20% of the MediaMath's business, the company's COO Ari Buchalter told Ad Age in April.
MediaMath's technology allows ad buyers to spread dollars across a number of media properties and audience segments, and then automatically allocate budget to the best performing placements.
The company, founded in 2007, has raised $108.5 million to date.