The technology company BrightRoll should be smiling about now as Yahoo has come to the rescue. Everyone knows who and what the company Yahoo does but BrightRoll is a technology company that has been down on its luck for a few years. BrightRoll has taken a fall in the area of creating revenue to build so because of their situation Yahoo came to assist.
When BrightRoll yesterday agreed to be acquired for $640 million by Yahoo [fortune-stock symbol=”YHOO”], it was much more than just a validation of the eight year-old company’s online advertising platform. It also was a reminder that tech startups needn’t always raise every last dime available from venture capitalists.
San Francisco-based BrightRoll raised around $40 million in venture capital funding since being founded in 2006, but its most recent round was a full three years ago. Instead, BrightRoll kept its cash burn in check and focused intently on execution — becoming profitable with what Yahoo says will be more than $100 million in net revenue this year (a figure that I hear is a significant underestimation).
“The key is that the company’s sales and marketing efficiency was phenomenal,” says a source familiar with BrightRoll. “They really managed to scale from very small to very large by increasing sales productivity, rather than…
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