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Donuts “almost doubles” $100m funding for new gTLD auctions

Kevin Murphy, April 9, 2013, 02:34:15 (UTC), Domain Registries

Somebody thinks new gTLDs will be a money-spinner.

Portfolio applicant Donuts, which is involved in 307 applications, has just announced a second funding round, greatly increasing its new gTLD contention set war-chest.

(UPDATE: This article originally stated, erroneously, that the funding was to the tune of $100 million. The exact amount has not actually been disclosed. Apologies for the error.)

It follows a $100 million funding round last year.

While the new amount was not disclosed, the deal “almost doubled” its funding, according to a press release, strongly suggesting it’s of a similar amount.

Existing investor Generation Partners and new investor Columbia Partners Private Capital were both involved in the round.

The company announced its first $100 million investment last year.

CEO Paul Stahura said the money was earmarked for new gTLD contention sets, many of which will be resolved at auction, and that “Donuts has further access to additional capital should the need arise”.

In a press release, he said:

We intended from the beginning to secure the gTLDs for which we applied. We enjoy tremendous support from our stockholders and lenders. This was an oversubscribed round that nearly doubles our capacity to compete. Our investors believe as strongly as we do that new gTLDs will bring relevance and specificity to registrants who have few usable choices today for Internet identities. This additional capital supports that belief, and we intend to deploy it to bring new gTLDs to market.

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Comments (4)

  1. Godefroy Jordan says:

    Quite strange that no any financial online media (penews.com, preqin.com, pitchbook.com…), nor the webiste from Columbia and Generation had a word on this huge investment. I hope for Donuts, Inc this isn’t just bluffing. Let’s wait for some official confirmation by some serious previous equity reporters.

  2. Rubens Kuhl says:

    Guesses are at $40m estimate for this new round.

  3. Donald Trump says:

    Whatever…$100 Mill divided by 158 strings in contention is $632,000 each…chump change.

  4. Rubens Kuhl says:

    What’s the current market value of high profile (single word, short) gTLD domain ?

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