Gather Network seeks USD 5m in Series A — CEO
21 October 2021, by Rupert Cocke for Mergermarket
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Gather Network, a Dubai-based digital monetisation platform, is in the middle of raising a USD 5m Series A round, founder and CEO Reggie Jerath told Mergermarket.
The fundraising will result in a USD 20m post-money valuation, Jerath said, adding that it is a hybrid round involving both equity and tokens. It is aimed both at venture capital (VC) firms and investors from the cryptocurrency world, he said.
The company aims to close the round in 4Q21, Jerath said, adding that it is still open to new investors. The proceeds will be used for expansion and to implement its go-to-market strategy, he said.
Proceeds will also give the company a runway of two years, he said. It will definitely seek more money in the future, he said, adding that the Series A will also include a listing on a tier-one token-based exchange.
Although Gather Network does not disclose its revenues publicly, figures will be available to potential investors as part of their due diligence, he said.
The company’s main business involves trading processing power for revenue, Jerath said. Owners of websites and apps can ask users’ permission to access their central processing units (CPUs), he said, and the aggregated capacity can be used to mine cryptocurrency. Users have the option of sharing revenue with their clients, he said.
Gather Network has also developed a cloud-computing model, which is based on services for cost-sensitive tech start-ups, he said. The business model is based on decentralised file transfer services, he said.
The company has no direct competitors for its digital monetisation platform, Jerath said. However, Brave Software of San Francisco is in a similar space, he said. Brave’s browser offers payment in tokens in return for watching adverts.
Competitors on the cloud computing side of the business include Akash Network, also of San Francisco, Jerath said, which offers permissionless cloud services.
Gather has around 50 employees and has raised USD 1.5m so far, Jerath said.
by Rupert Cocke for Mergermarket