Merger of Two Companies Creates Social Commerce Powerhouse
Menlo Ventures Receives 3X Return on Initial Investment
MENLO PARK, Calif., May 25, 2012 (GLOBE NEWSWIRE) -- Menlo Ventures, a seed to growth stage investor in consumer and enterprise technology companies, announced today that its portfolio company, PowerReviews, entered into a definitive agreement to be acquired by Bazaarvoice (Nasdaq:BV) for approximately $150 Million.
PowerReviews is a leader in social commerce, helping more than 1,100 customers tap into consumer conversations to drive better business results, while providing consumers with an easy way to share their insights about brands, products and services. Bazaarvoice, a software-as-a-service (SAAS) company that went public in February 2012, offers social commerce solutions to retailers and brands.
Menlo Ventures, the lead investor and largest shareholder in PowerReviews with an ownership of about 30%, led the Series A round in December of 2005 and participated in all subsequent rounds. The deal represents a return of approximately 3 times its investment for Menlo Ventures IX.
Menlo Ventures' Managing Director John Jarve has been a board director and made the venture firm's initial investment. "PowerReviews is an innovator in the social commerce space. We funded the company when it was just four people and are pleased with its tremendous growth. This merger joins two innovative technology solutions and exceptional management teams to become the dominant leader in the cloud-based social commerce space."
About Menlo Ventures
Menlo Ventures provides capital for seed through growth technology companies in the consumer and enterprise sectors. For decades, the firm's market-driven research analysis has led to the identification of and successful exits in innovative technology markets. Notable research-areas of investment include Mobile (Siri, MobiTV, TeleNav), Enterprise storage (3Par), Communications (Acme Packet, Cavium Networks), and Consumer (Carbonite, Roku). Founded in 1976, Menlo's portfolio includes 70 public companies and more than 100 mergers and acquisitions. Throughout the firm's history, Menlo's deep network of portfolio entrepreneurs, angels and advisors are a key resource made available to all of the firm's investments. Menlo Ventures has $4B under management and is currently investing Menlo Ventures XI, a $400M fund with $20M allocated to our Menlo Talent Fund for fast seed funding. For more information, visit www.menlovc.com.