JMI Backs Undertone

Undertone Networks, a New York-based online advertising network, has raised an undisclosed amount of VC funding from JMI Equity. It also raised leveraged financing led by Orix Venture Finance.


Undertone Networks, a premium online advertising network, announced today that it has received a strategic investment from JMI Equity.  JMI, a private equity firm exclusively focused on investments in growing software and business services companies, will work closely with Undertone's management team to help the company continue to grow, deliver innovative services to its clients and create opportunities for its employees.  As part of the transaction, Brad Woloson, a General Partner at JMI, has joined Undertone's Board of Directors.  ORIX Venture Finance led the financing for the transaction.  Terms of the investment were not disclosed.

Working with leading traditional and digital advertising agencies and their clients, Undertone executes and strategically manages online advertising campaigns that allow clients to maximize their return on investment.  The funding from JMI will enable Undertone to accelerate new product development and research, and further expand its presence in both U.S. and international markets.  Currently, Undertone has offices in seven major media markets across the U.S. and offers a full suite of interactive advertising solutions that include video, behavioral targeting and high impact ad solutions across a collection of the Internet's most well known and regarded Web properties. 

“JMI understands our business and will help us execute our strategy of showing leading marketers how a network like Undertone can be effective for both brand and direct response initiatives,” said Michael Cassidy, Chief Executive Officer, Undertone.  “JMI's expertise in our market is highlighted by its recent investment in DoubleClick and we believe JMI will provide us with the guidance we need to expand our platform and our global presence, while continuing to provide innovative services to clients and opportunities to employees.”

“In the crowded ad network marketplace, Undertone has distinguished itself by bringing accountability to the space by establishing itself as the only ad network focused exclusively on high-end Web publishers,” said Mr. Woloson of JMI.  “We are pleased to have the opportunity to work closely with Michael and the Undertone team to enhance the company's unique platform and offerings by building on Undertone's well-earned market leadership position and reputation for innovation and creativity.”

The Jordan, Edmiston Group, Inc. represented Intercept Interactive, the parent company of Undertone, in the transaction and acted as its exclusive financial advisor.  JMI was advised by Goodwin Procter, LLP. 

About Undertone Networks

Undertone Networks, an Intercept Interactive company, is a premier online advertising network comprised of today's top media properties. Undertone provides online solutions that help advertisers achieve their brand and performance-based initiatives via a comprehensive selection of ad formats, rich media, targeting capabilities and personalized service. The company is headquartered in New York and has offices in Atlanta, Chicago, Dallas, Detroit, Los Angeles and San Francisco.  For more information, please visit 

About JMI Equity

JMI Equity, based in Baltimore and San Diego, is a private equity firm exclusively focused on investments in growing software and business services companies at all stages of their lifecycles. Founded in 1992, JMI has invested in more than 90 companies throughout North America and has approximately $1.3 billion of committed capital under management. JMI provides the first institutional capital to self-funded companies, partners with management teams to acquire or recapitalize market leading companies and selectively makes investments in early-stage companies. Representative investments include Blackbaud, DoubleClick, Kronos and Unica. For more information on JMI, visit

About ORIX Venture Finance

ORIX Venture Finance provides enterprise financing to mid- and late-stage venture capital-backed companies via acquisition financing, expansion capital, working capital term loans and credit lines, and equity co-investments.  The Venture Finance team, staffed with highly seasoned venture lending professionals, meets the challenges facing growth companies by structuring flexible financing packages that meet your unique needs.  We are a stable and reliable partner dedicated to supporting the growth and success of professionally backed companies with a range of debt products.  For more information, visit