Everyday Health Raises $20M, Drops Planned IPO

Shelving previously announced IPO plans, content network Everyday Health on Friday said it raised $20 million. Technology Crossover Ventures led the Series G round -- which has the potential to increase to $50 million -- along with existing investors, including Rho Ventures and Scale Venture Partners.

The funds are being earmarked for strategic acquisitions, and other growth initiatives, Everyday Health co-founder and CEO Benjamin Wolin said Friday.

"The company continues to perform very well," said Wolin. "We will continue to be aggressive with investments and acquisitions."

The company oversees more than 25 health-related Web sites -- from lifestyle offerings in pregnancy, diet and fitness to medical content for condition prevention and management -- which together reach 26.5 million monthly unique users. During the first three quarters of 2010, the New York-based company's revenues increased 27% year-over-year, including an increase in advertising and sponsorship revenue of 33%.

"As a result of the financing, Everyday Health will withdraw its registration statement for an initial public offering with the SEC," a company spokesperson said Friday.

The market for initial public offerings is still recovering from the financial meltdown than began in 2008. According to the National Venture Capital Association, 38 VC-backed companies have gone public this year -- down from 86 in all of 2007 but up from six deals in 2008 and a dozen in 2009.

In the past quarter, Everyday Health, which has about 400 employees, named the former president and COO of Genentech, Myrtle Potter, to its board of directors.

The company also launched PDRHealth.com in partnership with the publisher of the Physicians' Desk Reference.

Everyday Health has now raised more than $75 million.

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