When Outcome Capital became involved with Advertising.com in May of 1999 during its first year in operation. The rapid expansion of revenues to a monthly run rate of $400,000 had seriously strapped the Company’s cash resources. Advertising.com had received a round of funding from individual investors and was considering its first institutional round. Outcome Capital placed $9 million of preferred equity financing with New Enterprise Associates , Grotech Capital Group, and Blue Chip Venture Company. Outcome Capital’s partners also invested in the company.
In a Washington Post article written in July 2004, Scott Ferber, the co-founder and CEO of Advertising.com mentioned the contribution Outcome Capital had made to his company. Scott said, “Thank gosh for Jon Wallace. He earned every penny we paid him”.
Advertising grew rapidly from 1999 through 2002. In 2003 the company booked its first operating cash flow of $12.1 million on revenues of $132 million. In 2004, Advertising.com filed with the Securities and Exchange Commission for an initial public offering (IPO) of its common equity securities. In May, 2004, AOL offered $435 million in cash to acquire Advertising.com. The merger was completed in August 2004.