Phorm Raises Capital to Keep things Ticking

This post was written by Jack Marshall

ISP-level behavioral targeting company Phorm is raising more capital, selling 19.4 percent of the firm for a figure of £15 million through a new share offering to keep it fueled until it finds some customers.

Despite announcing a content recommendation product last week designed to encourage users to opt-in to its ad targeting platform, none of the firm's ISP partners have actually implemented the technology yet, meaning the company currently has no active revenue streams.

The company said in a statement today that it intends to use the cash to "continue the implementation of its service in the U.K. and Korean markets, and for general working capital purposes, as it continues its discussions with other ISPs both in the U.K. and internationally." CEO Kent Ertugrul said he was "pleased that the financial community has demonstrated its support for Phorm, with a substantially over-subscribed offering."

Last week, the company's managing director, U.K., Nick Barnet, told me that U.K. agencies were impressed by the product, and eager to know when it was fully deployed. At present, neither Phorm nor its ISP partners - BT, Virgin Media, and Talk Talk -- can say when that is likely to be.