Atlas Obscura, a renowned travel publisher, is currently in the process of securing $10 million in an investment round with the involvement of 20 previous investors and the inclusion of smaller investors through the venture capital investing platform OurCrowd.
In a previous statement to Digiday, Atlas Obscura CEO Warren Webster mentioned the company’s decision not to pursue another fundraising round until achieving profitability in a challenging media landscape. While he did not disclose whether the company was profitable last year, Webster did indicate that they at least broke even in 2023. Despite the ongoing tough market conditions, the company has proceeded with the current fundraising drive due to its business growth during the same year.
Financial Forecast and Momentum
According to information provided on OurCrowd’s website, Atlas Obscura projected a 19% revenue increase in 2023 compared to the previous year. Although the exact revenue figure for the company in 2023 remains undisclosed due to ongoing accounting processes, Adweek reported that Atlas Obscura was on track to generate $24 million in revenue that year. In comparison, the company had generated $18 million in revenue in 2022, indicating a potential 19% growth to $21.4 million.
Company Valuation and Market Trends
Despite a challenging venture capital market, Webster expressed optimism about the rapid growth and potential opportunities for Atlas Obscura, motivating the company to proceed with a $10 million fundraising round. As of the latest update, Atlas Obscura had secured 60% to 70% of the $10 million target, with plans to raise $5.5 million through OurCrowd for an initial close by the end of the week.
The current funding round has valued Atlas Obscura at approximately $24 million, a decrease from its previous $20 million Series B fundraising round in 2019, which valued the company at around $45 million. Webster clarified that market trends have influenced other digital media companies, like Vox Media, to raise funds at approximately 50% of their previous valuations.
Market Comparison and Investor Insights
Webster noted that Atlas Obscura’s valuation aligns with current market standards, highlighting the rationale behind not pursuing a significantly larger fundraising round. Sam Thompson, a senior managing director at Progress Partners, commented on the rarity of recent media and content companies experiencing continuous valuation growth.
Overall, despite the challenging market environment, Atlas Obscura’s strategic approach to fundraising and business expansion reflects its commitment to sustainable growth and resilience in the media industry.