26th September 2007
Generic domain name seller attracts huge investment
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Prominent generic domain name seller, Demand Media, has raised as much as $100 million in third-round private equity funding.
With Goldman Sachs leading a host of big investors, Generation Partners, 3iGroup and other high-profile companies have together added what is now a total of $320 million of funding to Demand Media.
The Santa Monica-based company has not yet responded to the funding news, but is reported to be unlikely to seek further private equity backing.
"I'd be surprised if they did another private round," a source close to Demand Media was reported to say, adding that "it's raised a lot of capital and is generating enough cash-flow to at some point be a good IPO candidate".
Selling web addresses and primarily generic domain names has made Demand Media an appealing target for private equity backing, with companies like Goldman Sachs showing their belief in the profitability of the industry.
Founded only 18 months ago, Demand Media has raised its profile dramatically by profiting from the vast attraction of the high-value product-specific web addresses it has sold and monetized.
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