Jumptap's $25M Round Signals New Gains

This morning Jumptap announced a new $25 million round of funding, bringing its total money raised to roughly $90 million. Participants in the round were AllianceBernstein, General Catalyst, Summerhill Ventures, Valhalla Partners and agency holding company WPP. 

Though one of the largest independent mobile ad networks the perception was that JumpTap had lost momentum, resulting in a management shakeup last year. However the funding would appear to confirm new momentum. 

The company now claims reach of 83 million consumers, 10,000 sites/apps in its network and 10 billion ad requests in April. JumpTap accommodates the full range of ad units. The company also operates intentionally in several countries. 

Below is IDC's estimate (Q4 2011) of the distribution of mobile ad revenues. No doubt this is inaccurate today but directionally it shows the relative shares of revenue in the US market. JumpTap is the smallest of the "big" players. Nokia and AOL are non-entities right now. 4INFO is a conspicuous absence in the chart below. 

Screen shot 2011-05-05 at 6.55.17 AM

JumpTap began as a search-based network and white-label provider of mobile search to carriers. When Google, Microsoft and Yahoo took over the mobile search business JumpTap shifted and became a mobile display network. 

The company was growing and then seemed to falter. CEO Dan Olschwang was outsetd last year and replaced by General Catalyst's George Bell, which seemed to indicate the network was in trouble.

However the metrics and new funding indicate the JumpTap is back on track. JumpTap will likely get acquired rather than go public; the question is for how much?

AdMob was bought by Google for $750 million (in stock), while Apple acquired Quattro for between $250 and $275 million. Online ad network ValueClick recently bought Greystripe for $75 million.

JumpTap also holds what appear to be several key mobile advertising patents.

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