Internet Wire nets dollars 17m VC windfall

LOS ANGELES: Ripe with an infusion of dollars 17.5 million in venture capital funding, online news distributor Internet Wire is hoping to make further inroads into the dollars 350 million satellite-based wire services market.

LOS ANGELES: Ripe with an infusion of dollars 17.5 million in venture capital funding, online news distributor Internet Wire is hoping to make further inroads into the dollars 350 million satellite-based wire services market.

LOS ANGELES: Ripe with an infusion of dollars 17.5 million in

venture capital funding, online news distributor Internet Wire is hoping

to make further inroads into the dollars 350 million satellite-based

wire services market.



Co-founder and CEO Michael Terpin said most of the money will be plowed

into beefing up the company’s sales and marketing team, which has

already grown from four to 83 since the start of last year. Some of the

money will be allocated for expansion across new vertical markets, but

the riches vein remains hi-tech. Internet Wire already has 26,000

journalists in its database, of which 9,000 are in technology The client

base has also grown to 2,300.



Investors included VC heavyweights Sequoia Capital and Hummer Winblad

Venture Partners. With both firms considered strong IPO engineers, it

may only be a matter of time before IW goes public. ’It is certainly an

option we are considering,’ Terpin admitted. Internet Wire is already

valued at dollars 43 million, according to Terpin.



Terpin also said that it was unlikely IW would pair with one of the

major wire services: ’We met with both Business Wire and PR Newswire a

little while ago to discuss possible synergies, and found there were

none.’



The average cost of distribution on Internet Wire is dollars 275 versus

an average cost on a satellite-distributed release of dollars 1,000,

Terpin claimed.



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