Berkeley, CA-based Cybergold Inc., one of the first
Web-based incentive marketers, filed for an initial public offering that
could raise as much as $46 million.
The company gives cash incentives to consumers who view or respond to
selected online ads. Members can receive their online earnings through their
credit cards or bank accounts, or spend them on music, software and other
products advertised on Cybergold’s Web pages or those of its clients.
Membership is free, and the company says it has compiled a database of 1.8
million members — though its base of frequent users is smaller, according
to
its filing with the SEC. The company said most of its revenue comes from “a
small percentage of our members,” and 20 percent of its members “have
requested not to receive e-mail from us.”
Cybergold charges advertisers only when consumers respond to enticements.
Although first quarter revenues were $503,000 compared to $107,000 in the
first quarter of 1998, Cybergold’s net loss widened to $1.7 million from
$1.2
million. The company has run up a $13.8 million deficit to date, according
to
the filing.
Cybergold, founded by Chairman and Chief Executive Officer Nathaniel
Goldhaber, didn’t say exactly how many common shares it plans to sell or
what
price it will seek, and estimated the IPO’s top value at $46 million only as
a basis for calculating the filing fee.
Goldhaber is the current top shareholder at Cybergold with a 34 percent
stake.
Cybergold would be traded on the Nasdaq market under the symbol CGLD.