Loudcloud, the Web site services venture co-created by Netscape founder Marc Andreessen, plans to go public and raise up to $150 million, according to documents filed with the Securities and Exchange Commission. Funds will help the company build its Web infrastructure business.
While that bodes well for the 1-year-old startup, it bodes even better for Michael Ovitz, who last week announced that he has joined the company’s board of directors and has invested an undisclosed amount in the company (Daily Variety, Sept. 22). It is unclear how many shares Ovitz holds, but a successful performance on Wall Street by Loudcloud would provide the first major technology hit Ovitz has had since playing the dot-com investment or consulting game. Loudcloud is the first tech venture whose board Ovitz has joined.
Not promising investors profits anytime soon, Loudcloud generated $1.9 million in revenue for the six months that ended July 31. About 27% of its revenue for that period came from just two clients. Andreessen is the company’s largest individual shareholder with a stake of 18.2%.