When
WWC became involved with Advertising.com in May of 1999 during
its first year in operation. The rapid expansion of revenues to
a monthly run rate of $400,000 had seriously strapped the Company’s
cash resources. Advertising.com had received a round of funding
from individual investors and was considering its first institutional
round. WWC placed $9 million of preferred equity financing with
New Enterprise Associates
, Grotech Capital
Group, and Blue
Chip Venture Company. WWC’s partners also invested in
the company.
In a Washington Post article written in July 2004, Scott Ferber,
the co-founder and CEO of Advertising.com mentioned the contribution
WWC had made to his company. Scott said, "Thank gosh for
Jon Wallace. He earned every penny we paid him ".
Advertising grew rapidly from 1999 through 2002. In 2003 the
company booked its first operating cash flow of $12.1 million
on revenues of $132 million. In 2004, Advertising.com filed with
the Securities and Exchange Commission for an initial public offering
(IPO) of its common equity securities. In May, 2004, AOL offered
$435 million in cash to acquire Advertising.com. The merger was
completed in August 2004.
