TechTarget Closes $15 Million in Series C Financing; New Round Brings 2004 Total Funding to $85 Million; Company Ranks Third in U.S. in Venture Capital Funding Raised This Year

Business Wire, Dec 21, 2004

NEEDHAM, Mass. -- Information technology (IT) media company TechTarget announced today that it has secured $15 million in Series C funding from Palo Alto-based Technology Crossover Ventures (TCV) and Waltham (MA)-based Polaris Venture Partners. TCV and Polaris Venture Partners are existing investors in the company. Polaris led TechTarget's $30 million Series A round and participated in the June 2004 funding round of $70 million, in which TCV was the lead investor. The Series C funding brings TechTarget's total funding to $127 million, with $85 million raised in 2004 alone. Only two other U.S. companies have secured more funding this year.

TechTarget will use the proceeds to continue its rapid organic growth, fund additional acquisitions, and expand its international presence. The company projects it will close 2004 with nearly $50 million in revenue and will surpass $80 million in revenue in 2005.

"TechTarget's investors recognize that our tremendous record of achievement over the past five years is only a preview of the success we can achieve in the future," said TechTarget CEO Greg Strakosch. "The IPO-sized funding we've received this year has already enabled us to be very aggressive in pursuing our goals. This most recent capital infusion allows us to continue on this path: funding additional strategic acquisitions, expanding internationally and accelerating the pace of organic growth. We're fortunate that our strong business model and successful operating history gives us access to the capital we need to seize strategic opportunities."

Since June's $70 million Series B installment -- the sixth-largest venture capital round of 2004 -- TechTarget has completed several major acquisitions and media launches:

--On December 13, TechTarget announced its acquisition of Boston-based Bitpipe Inc for $40 million in cash in a deal that merged the two fastest-growing IT media companies. As a result of its acquisition of Bitpipe, the #1 distributor of IT white papers, TechTarget now owns a majority share of the market for the distribution of IT white papers and other IT vendor-supplied content.

--On November 30, TechTarget purchased TheServerSide Communities, the #1 online communities and events for Java and .Net application developers, from VERITAS Software Corporation. The deal marked TechTarget's entry into the enterprise application-developer media market.

--In early November, TechTarget announced the launch of the company's third magazine, CIO Decisions, a monthly magazine serving CIOs and senior IT executives in the fast-growing U.S. midmarket. CIO Decisions is helmed by Publisher Joseph Levy and Editor-in-Chief Maryfran Johnson, who both joined TechTarget in September. Levy, a 30-year veteran of TechTarget competitor International Data Group (IDG), founded IDG's CIO magazine and served as president of IDG's CXO Media unit. Johnson resigned her post as editor in chief of IDG's flagship publication Computerworld to assume her post at TechTarget.

--In May, the company began its international expansion, launching TechTarget China and Information Security Taiwan.

Earlier this year, TechTarget also acquired several targeted media properties that fortify its presence in critical markets, including MyITForum.com, the top independent Web site for enterprise IT pros using Microsoft's Systems Management Server (SMS) software; and SAPFAQ.com, an online community of SAP-focused IT professionals. Also this year, TechTarget expanded its portfolio of targeted Web sites with organic launches, including the launches of SearchExchange.com, SearchSmallBizIT.com, and the TechTarget Expert Answer Center.

About Technology Crossover Ventures

Technology Crossover Ventures (TCV), founded in 1995, is a leading provider of growth capital to technology companies, providing funds to expansion, late-stage private, and public companies. TCV employs a crossover investment model that combines venture capital with public market investing and enables TCV to continue to invest in its portfolio companies at the IPO and beyond. TCV manages over $3.3 billion in assets and has invested in over 135 companies to achieve over 35 IPOs and 22 strategic sales or mergers. Leading investments include Actuate, Alteon Websystems, Altiris, C Net, Expedia, Netflix, RealNetworks, and Xylan. TCV has 10 partners and is headquartered in Palo Alto, CA. More information about TCV is available at www.tcv.com.

About Polaris Venture Partners

Polaris Venture Partners invests in seed- and early-stage companies and in growth-equity companies with substantial operating income. As the lead or co-lead investor in virtually all its portfolio companies, Polaris takes an active long-term role in helping each company develop into a successful business. Polaris has over $2 billion under management and current investments in more than 60 companies. Polaris-backed companies include: Advanced Inhalation Research (AIR(TM)), Akamai Technologies, Inc. (NASDAQ: AKAM); Allaire Corporation (sold to Macromedia); Aspect Medical Systems (NASDAQ: ASPM); Centra Software (NASDAQ: CTRA); deCODE genetics (NASDAQ: DCGN); and SolidWorks (sold to Dassault Systemes). The company has offices in Boston and Seattle. More information about Polaris Venture Partners is available at www.polarisventures.com.