Seven Ducks Float
Wireless email startup Seven Networks Inc. has postponed its proposed initial public offering and gathered another round of venture capital funding instead.
In late March of this year, the startup announced its plan for an IPO that could have made up to $115 million -- but it never got much further than that (see Seven Plots $115M IPO).
Instead, the company decided to go for a further round of private funding, although it isn't saying how much. Seven has already raised $55 million in its A and B rounds.
A spokesman for Seven says that, during the IPO process, the firm was too tempted by the offer of further private funding to refuse the VC greenbacks [ed. note: it wouldn't be polite...].
"Through our IPO registration, strategic investors interested in investing at attractive valuations approached us, thereby making unnecessary the need for an IPO," the spokesbloke wrote in an email reply to questions.
But, as Unstrung pointed out when Seven initially filed for an IPO, the firm's financials where not as healthy as some might have wished.
The scant details in the firm's preliminary S-1 filing showed that the firm made total revenues of $6.9 million for 2003 but reported a net loss of $12.6 million. And this was an improvement on figures for the previous couple of years.
According to Seven's CFO, Tom Hoster, the company still plans to go public at some time. "We expect to go public when we are able to," he says.
The company isn't even putting a vague timefrrame on when that might be yet. "Depends on the market for initial public offerings, which can be unpredictable," says Hoster.
— Dan Jones, Site Editor, Unstrung