REVShare Raises $20 Million

REVShare, a Temecula, Calif.-based exchange that allows advertisers to bid for television time on a cost-per-action basis, has raised $20 million in a funding round co-led by Carlyle Venture Partners and H.I.G. Ventures. RBC Daniels advised REVShare on the transaction.

Global private equity firm The Carlyle Group and H.I.G. Ventures today announced they co-led a $20 million investment in REVShare, an exchange that allows advertisers to bid for television time on a Cost-per-Action (CPA) basis (akin to the Cost-per-Click method of web advertisers), versus the traditional method of charging based on projected audience size.

Founded in 1989, REVShare utilizes a proprietary bidding system whereby advertisers specify a price they are willing to pay per response (i.e. when someone is prompted to call a toll-free number or visit a website) and the air time is allocated according to media return on investment (ROI). Under this system, stations are able to sell their inventory without revealing the effective rate of their ads, and advertisers are able to pay rates that are determined by a combination of market forces and response to their ads.

REVShare has been profitable since its founding in 1989 and due to increased interest from advertisers and television stations has tripled revenues since 2003. The company has relationships with more than 1,500 English and Spanish local market television stations, cable systems, syndicators and networks that are willing to provide television time on a performance basis.

“REVShare's strong technology and results-based approach to advertising has become a great solution for many media providers,” said John Kim, Managing Director, H.I.G. Ventures. “The experience and expertise of the REVShare team is impressive and we look forward to working with them to take the company to the next level.”

“REVShare has created an innovative product and a broad network of 1,500 local market television properties that reach over 110 million U.S. households,” said Josh Ofstein, a Carlyle Principal. “Similar to the Pay-per-Click model that has been so successful on the Internet, REVShare delivers a performance-based solution to advertisers, which we believe has tremendous growth potential.”

“Carlyle and H.I.G.'s global network and media experience will increase REVShare's ability to attract new customers and rapidly accelerate the growth of the company,” said Joseph Gray, Chief Executive Officer of REVShare.

Carlyle's share of the investment comes from Carlyle Venture Partners III, a $605 million U.S. venture and growth capital fund.

RBC Daniels advised REVShare on the transaction.


Founded in 1989, privately held REVShare