Turn Raising New Round At $650M-$700M Valuation

turn-raiseTurn Inc. is seeking new funding at a valuation up to $700 million, ahead of a probable IPO in 2014.

Sources say the demand-side (DSP) and data management platform (DMP) company has been calling on investors in recent months seeking a new strategic round. These investors have gotten a peek under the hood at Turn’s financials.

In 2012, they say, its gross media revenues were $230 million, and the company is on a run rate of around $350 million for this year. Next year’s revenues are expected to be in the $500 million range, with global expansion a key focus. Gross margins are around 25%.

Unlike an ad network-focused company such as Rocket Fuel, Turn has a diversified business with multiple products and revenue models. In addition to software fees from its DSP and DMP tools, the 8-year-old company also charges some clients for managed services.

Turn has been through some gyrations over the years, evolving from a pure media execution play into a more holistic data-driven marketing platform with the launch of its DMP, Turn Audience Suite, in 2011.

Founded in 2005, the company has raised a total of $61.1 million to date, from firms including Norwest Venture Partners, Trident Capital, Shasta Ventures and Focus Ventures, according to CrunchBase.

The new market cap represents a significant win for Turn’s earlier investors. The valuation established in its previous round, in 2011, was about $150 million.

At the high end of its current raise, sources say Turn could achieve a total valuation of $750 million, but the company is seen as unlikely to take that route as it would necessitate giving up a greater share of the company.

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