Fora has successfully raised $45 million over three funding rounds, achieving a valuation of $360 million. The platform is one of the world’s largest community networks, with over 1,000 online communities and a tech platform that powers them.
Keep reading to explore the intricacies of Fora's fundraising journey and the investors backing this innovative platform.
What Is Fora?
Fora, founded by Jesse Rasch and Rob Laidlaw, is a leading community network platform. Established in Mountain View, California, and Toronto, Canada, Fora connects enthusiasts through over 1,000 online communities.
With a team of 51-200 employees, Fora helps users discover products for their hobbies and make informed shopping decisions. The platform supports various interests, including automotive, health, home, powersports, outdoor, and technology.
Fora's mission is to enable enthusiasts to share expertise and connect with like-minded individuals, fostering a vibrant community of over 70 million monthly active users.
How Much Funding Has Fora Raised?
- Series A
- Amount Raised: $45,000,000
- Date: November 2011
- Lead Investors: ABRY Partners
- Valuation at Round: $150M
- Motivation Behind the Round: To scale the business, develop products, and expand the team.
- Acquisition
- Amount Raised: $200,000,000
- Date: July 2015
- Lead Investors: Torstar Corp.
- Valuation at Round: $404M
- Motivation Behind the Round: To diversify revenue streams and reduce dependence on the Canadian economy.
- Initial Public Offering (IPO)
- Amount Raised: CAD 125,070,000
- Date: June 2021
- Lead Investors: RBC Dominion Securities Inc., Canaccord Genuity Corp., National Bank Financial Inc., TD Securities Inc., Raymond James Ltd., Desjardins Securities Inc., Cormark Securities Inc., HSBC Securities (Canada) Inc.
- Motivation Behind the Round: To accelerate accretive acquisitions and continue investing in the Fora software platform.
Fora has raised a total of $370,000,000 and is currently valued at $404M.
Key Investors
- RDL Ventures Inc. (RDL)
- Details: Controlled by Rob Laidlaw, RDL Ventures Inc. holds significant voting power in VerticalScope. It owns 2,957,265 Multiple Voting Shares, representing 15% of the total issued shares.
- Investment Focus Areas: Digital media, online communities, technology.
- Notable Investments: VerticalScope.
- NordStar Capital LP (NordStar)
- Details: Co-owned by Paul Rivett, NordStar Capital LP holds a substantial stake in VerticalScope. It controls 7,860,505 Subordinate Voting Shares, representing 46.7% of the outstanding shares.
- Investment Focus Areas: Media, digital content, technology.
- Notable Investments: VerticalScope.
- Hedgewood Inc. (Hedgewood)
- Details: Hedgewood Inc. owns 3,111,557 Subordinate Voting Shares in VerticalScope. This represents 18.5% of the outstanding shares.
- Investment Focus Areas: Digital media, online platforms, technology.
- Notable Investments: VerticalScope.
- Torstar Corp.
- Details: Torstar Corp. is a Canadian media company that acquired a 56% stake in VerticalScope for $200 million. It publishes the Toronto Star and other media outlets.
- Investment Focus Areas: Media, digital content, publishing.
- Notable Investments: VerticalScope, Harlequin.
- ABRY Partners
- Details: ABRY Partners is a private equity firm that held a minority interest in VerticalScope. It focuses on investments in media, communications, and information services.
- Investment Focus Areas: Media, communications, information services.
- Notable Investments: VerticalScope.
What's Next for Fora?
Fora's future looks promising with the recent IPO providing a strong financial foundation. The raised funds will enable the company to pursue further acquisitions and invest in its software platform, potentially expanding its portfolio of over 1,200 online communities and increasing its user base of more than 100 million monthly active users.
However, challenges lie ahead. The competitive digital media landscape and the integration of new acquisitions could pose significant hurdles. Despite these challenges, Fora's strategic focus on digital community engagement and targeted acquisitions positions it well for continued growth and success.
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