Swedish Startup Space

Widespace raises $12 million, prepares for launch in the USA

Written by on February 2, 2016

New documents reveal another large round in Patrik Fagerlund and Henric Ehrenblad’s company. Widespace sells ad solutions for smartphones, and is currently one of the most well-known companies in the Swedish tech industry. Patrik Fagerlund and Henric Ehrenblad founded the company back in 2007 with the expectation to surf the coming mobile ad-wave.

However, it took years for advertisers to discover the smartphone’s potential as a marketing platform. It took until 2012 before the company really took off, but revenues have grown continuously since. Last year, the company had revenues of over $45 million.

Widespace has also expanded to several other markets, which has been costly. The results for 2015 has yet to be revealed, but the company made a loss of $9 million.

The owners, with Northzone and Industrifonden leading the way, seems to believe in the adtech company’s growth strategy. In november, the company got permission to raise about $30 million from the current shareholders in preferred stocks.

According to Documents from the Swedish Company Registration Office, the company has raised almost $12 million as a first round, which was open to existing owners only. Both Northzone and Industrifonden has participated in the round, in which Widespace is valued at $76 million.

Widespace has also taken a $5.5 million loan from debt financing company Kreos.

The capital will be used to launch in the USA, according to sources to Breakit. The founders have hinted about an expansion to the U.S. before.

“I’d prefer to have another $10 million in the bank before we do the U.S.”, Henric Ehrenblad said to Bloomberg in an earlier interview.

His co-founder Patrik Fagerlund is a bit more careful when Breakit reaches him on Tuesday afternoon.

“Right now, we’re focusing on our core markets and keep on building the platform. I can’t comment on a possible U.S. launch, but we wan’t to build a global company in the long run”, Patrik Fagerlund says. He does, however, confirm that the company has added $17 million to its finances.

Mårten Vading, partner at the most recent investor, Kreos, comments as follows:

“Widespace has become a leader in datadriven mobile  brand advertising. We are convinced that the company is just at the beginning of its journey. We are very happy to have Widespace as one of the first investments in our new €400 million fund.”

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