Congrats to Rob and his team for closing it’s Series F round. The funding came from ICG (or as they were known back in the hey-day of the internet bubble, I See the next GE). $15m bought ICG 40% of the company on a ‘primary’ basis. Not sure what ‘primary’ means at this point, but assuming it’s just silly banker lingo, the round would value Channel Intelligence (CI) at $37.5m. According to the Business Week article, Channel Intelligence is expecting revenue of $10m in 2006.
At first glance, this looks like a low valuation for CI. Back in August, CEO Rob Wight was quoted as saying 2006 revenue would be $12-20m and the company was growing at 50% per year. Obviously, just looking at a revenue multiple doesn’t give the entire story. I’m not going to find out what’s happening under the hood, but I’m following up with Rob tomorrow.
BTW, Vcommerce is one of ICG’s portfolio companies, so don’t be surprised to see a deal between Vcommerce and CI sometime next year.
Related:
Channel Intelligence Press Release – November 28, 2006
Internet Capital Press Release – November 28, 2006
Congrats to CI, they provide a valuable service and its nice to see such news