Discover more from The FirstPartyCapital Newsletter
Digital Audience Q&A This Thursday; MiQ, The MadTech Billion Dollar Heroes; MadTechMoney Is Moving To November 14
And For Our Next Deal… Digital Audience: The Localised Clean Room Solution Doing €2 million in ARR
We have a new deal on our platform for the next month. Digital Audience is a Dutch company that has built nearly €2 million in ARR from its data clean room service.
But isn’t the clean room a commoditised segment, and can you really expect to compete against well capitalised solutions like Infosum, Liveramp, Snowflake et al?
These are excellent questions.
Digital Audience doesn’t compete with any of the aforementioned. Instead, it acts as an integration layer for these vendors and more, enabling advertisers and publishers to activate all data signals in a privacy-first environment,
You see the dirty secret of clean rooms is that it’s not really about “plug and play”. Local integrations are more important to both publishers and advertisers than a shiny enterprise layer.
It takes time and effort to aggregate, segment and activate localised data - even more so across a fragmented and privacy-focused market like Europe.
DA has positioned itself as the clean room solution of choice for the European mid-market - without burning through piles of capital.
To find out more information about this deal, you can access it here:
If you are keen to learn more we will be hosting a live Q&A with Ruben on Sep 15 at 10AM GMT. Sign up to join here to join us on Thursday: https://us06web.zoom.us/webinar/register/WN_TV-ATbFlSP2iQDjXI5WVEg.
While you weigh it all up, here are 6 reasons FirstPartyCapital is investing:
DA is on course to do €2+ million in recurring SaaS revenue this year with a very low burn rate.
The company is building a “clean room” tech moat in local European markets where larger solutions are unable to provide the scale required by local advertisers and publishers.
This “clean room” playbook is applicable to at least 10 additional markets, and the company is already making inroads into several new geographies.
There is huge value in aggregating these mid-sized markets as in aggregate it represents a very sizeable TAM, making it attractive to perspective buyers.
Digital Audience will be acquired in the €50-€100 million range int next 2-3 years, offering investors a good return on the value of this pre-series A round. This is the ultimate value arbitrage.
The team are ad tech veterans who understand the needs of the local market.
Time to get investing in this opportunistic deal.
MiQ: The Billion Dollar Heroes Of European MadTech
It’s getting announced today that MiQ has agreed to do a huge PE deal with Bridgepoint, valuing the business at just under a billion dollars.
It really is a remarkable outcome for company founders Gurman Hundal and Lee Puri.
They have truly built one of the greatest ad tech companies to have ever emerged from Europe - as well as anything we have seen in the programmatic age (2007-present day).
FPC still remembers discussing the concept of the company with Lee and Gurman over many tasty pints in The Marquis Of Granby nearly 12 years ago.
The company’s success has been underpinned by unparalleled service, cutting edge outcomes-based trading and a world class team assembled over the years. Many of that world class team, I might add, are LPs in the FirstPartyCapital fund.
One of the key takeaways from this deal: private equity is a big fan of European ad tech. There has been $1.8 billion in European MadTech PE deals over the past 12 months.
Some of those notable PE deals include:
Celtra to STG, $190 million valuation
TapTap to bd-capital, $100 million valuation
Seedtag to Advent International, $250 million valuation
MiQ to Bridgepoint, $900 million - $1 billion valuation
LoopMe to Mayfair Equity, $200 million valuation
This all bodes well for FPC portfolio company exits going forward, as it means the pool of acquirers is growing. PE has a real taste for companies in this space - and we look forward to doing deals.
Mark Your Diaries, People: Nov 15 Is The New Date For MadTechMoney
We have some MadTechMoney news now. A lot of attendees and speakers have asked us to change the date of our inaugural investment conference, as it currently clashes with a number of high-profile events in the US and Europe that week.
Given this feedback, we are now looking to host MadTechMoney on Tuesday, November 15. We feel this will be the perfect time for our core MadTechMoney audience (investment community and start-ups specifically).
The venue will be announced this week. So, mark those calendars people: Tuesday, November 15 is the new date for MadTechMoney.
You can buy your ticket here: https://madtechmoney.com/#tickets.
Please note that tickets will be very limited given the demand.
Have a great week, readers.