GE, NBC Create $250M Media-Investment Fund

Online-Advertising Startup Adify Is One of Its First Investments

By Todd Spangler -- Multichannel News, 4/17/2007 11:37:00 AM

NBC Universal and GE Commercial Finance’s Media, Communications & Entertainment unit launched a $250 million equity fund to invest in media and technology companies with business models or technologies that have “a strong strategic fit with NBC Universal,” the companies announced Tuesday.

The fund will target investments of $3 million-$15 million in companies focusing on segments that may include advertising services, wireless, digital content and communities and international platforms, the companies said.

The duo also announced one of the fund’s first investments: a $3 million stake in Adify, an online-advertising startup in San Bruno, Calif.

"This fund gives us an opportunity to participate in the development of cutting-edge technologies and to help shape the future of our industry," NBC U president of integrated media Beth Comstock said in a prepared statement. "We believe in the ad-network model, and Adify is a true leap forward in online ad-serving technology. Vertical networks are emerging as an important way to develop scale for our marketing clients."

Adify, founded in 2005, automates management, tracking, reporting, billing and payment systems for advertising aimed across a network of Web sites. NBC U said it is “exploring ways to use Adify's technology.”

The funding from GE and NBC U was part of $19 million in second-round financing in Adify led by U.S. Venture Partners that also included investments from Venrock Associates and Time Warner Investments. Adify raised $8.25 million in first-round funding last year.

GE Media, Communications & Entertainment manages nearly $8 billion in assets. NBC U is 80%-owned by GE and 20% by Vivendi.