"It's a challenging fundraising environment for
companies in the ad-tech space," said TubeMogul CEO Brett Wilson in
an interview with Ad Age. "But the fact that we got a deal done and
brought on a number of high quality public equity investors really
is a testament to the differentiation of our models versus
The others -- YuMe and Tremor are TubeMogul's closest competitors --
have struggled mightily after making their public debuts. YuMe sits
at close to $6 after an IPO price of $9. Tremor is trading at just
below $4 dollars after going out at $10.
Many point to these companies' labor-heavy sales operations as a
reason for the turbulence, citing their reliance on lots of
salespeople as proof that they aren't any different than
traditional ad networks.
"The companies in their space that came public before TubeMogul
(many/most of whom I shorted at one time or another) could never
back up their claims with margins for being tech plays," wrote Rob
Majteles in an email. Mr Majteles is founder and managing partner
of Treehouse Capital. "As a result, they made the entire area
difficult for investors to believe. That hurt TubeMogul's
offering." Mr. Majteles also said he is a friend of Mr. Wilson.
Without naming names, Mr. Wilson tried to paint TubeMogul in a
different light. "Our approach is to build self-serve software,
where our clients can manage everything on their own," he said.
Mike Vorhaus, president at market research and consulting firm
Magid Advisors, said TubeMogul did "the conservative, wise thing"
by bringing down its target price. The company, he said, avoided
the situation Facebook ran into when it priced its shares high and
ended up falling on its IPO today. Looking at TubeMogul's business,
Mr. Vorhaus said the amount of funding mattered little. "When I
look at their numbers, I believe they'll be going cashflow positive
soon," he said.
TubeMogul is listed on Nasdaq under the symbol "TUBE." It raised
more than $53 million in funding before its IPO.