Adauction.com Secures More Than $7 Million in Financing

San Francisco-based Adauction.com said it has secured more than $7 million in financing, with Convergence Partners signing on as the lead venture capital investor.

Other financiers include Geneva Partners, b/z partners, Silicon Valley Bank, the Band of Angels and numerous private sources, including Compaq Computer chairman Ben Rosen.

Convergence Partners primarily invests in digital media and information technology companies.

“Adauction.com’s business model, based on creating market efficiencies for Web publishers and advertisers, has made a real impact on the online advertising industry,” said partner Eric Di Benedetto. “The company has quickly built a reputation for providing unmatched customer service–a strong factor in our decision to partner with them.”

The funding will be used to grow Adauction.com’s product development, technology infrastructure, sales and marketing programs, the company said. To date, the company has raised $10 million.

“Our investors and customers are very optimistic about the company’s long-term prospects to lead the market for buying and selling media online,” said David Wamsley, Adauction.com president and CEO. “Since our inaugural auction in February, we’ve gained much market momentum, continuing to dramatically increase our customer base and monthly sales. We expect 1999 to be a banner year as we extend our product offerings and break new ground in this high- growth market.”

Adauction.com represents more than 120 Web publishers that supply ad inventory, including Netscape, Match.com, Biztravel.com, XOOM.com, HotBot and Spinner.com. The company operates several types of auctions for media buyers.