Wired raises $21.5 million
Wired Ventures, which withdrew plans for an IPO in October for lack of interest from Wall Street, has received $21.5 million from institutional investors.
The company declined to name the institutional investors or terms of financing. But given that Wired has received $28 million from investors in the past, this newest infusion of funds represents a minority stake, a source with the company said.
Wired Ventures will use the proceeds to carry out the next stage of its business strategy, chief executive Louis Rossetto said in a statement.
The company posted a $42.8 million loss during the first nine months in 1996, compared with a loss of $3.3 million a year ago, according to its IPO prospectus. Originally, Wired had hoped to issue 20.9 million shares to give the company a value of $292.6 million.
Company representatives said there are no plans to launch a revised public offering in the near future.
"Wired now has a more solid financial footing than ever before," said Jeff Simon, chief financial officer, in a statement.
He added that the company's Internet traffic grew 53 percent from the third to the fourth quarter for its HotWired Network and that its Wired magazine circulation climbed 13 percent in 1996 over the previous year.