Donuts announced they have secured an undisclosed amount of additional funding, on top of the $100 million in financing that was announced last June, in their quest to launch squillions of new gTLDs. OK, not quite â they only applied for 307 gTLDs!
The new funding includes a Series B equity investment led by existing investor Generation Partners, at twice the valuation of the initial Series A round, as well as additional financing from Columbia Partners Private Capital, the latter complementing the company’s existing senior line from Comerica Bank. Specific terms of the deals were not disclosed.
The funding received in June was initial funding of more than $100 million from multi-billion dollar venture capital and private equity funds and a top-tier bank.
Donuts CEO and co-founder Paul Stahura said the additional capital is targeted toward securing new gTLDs in the coming months, when applicants are slated to resolve “contention sets,” an industry term for multiple applications for the same gTLD.
“We intended from the beginning to secure the gTLDs for which we applied,” Stahura said. “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.”
“Capital is a critical element of the approaching phase of the new gTLD program,” said Generation Partners Managing Partner John Hawkins. “Donuts applied for more than three times the number of gTLDs as the next largest applicant, and the companyâs investors intend for Donuts to have what it needs, or even more than it needs, to continue its leadership position.”
Stahura confirmed that Donuts has further access to additional capital should the need arise.