eWanted.com Receives $31M Bid

Reverse e-auction pioneer eWanted.com Corp. recently raised $31.7 million in its first round of institutional funding.

The company went into the deal hoping to get a pre-money valuation of between $80 million and $125 million and ended up accepting term papers that put the company’s worth at $90 million.

Hikari Tsushin Inc. led the deal with Dain Rauscher Wessels, Roadrunner Asset Management, Avitar Capital Partners and an assortment of individual investors and hedge funds also participating.

“We did get some increased scrutiny [because of the public market correction], but people seemed to feel that we really had the right type of mix of a long-term scalable business model and first-mover advantage,” said Craig Palmer, chief executive with eWanted.com.

The company had previously received about $5 million of cash and equivalent compensation through an assortment of angel inventments and executive management infusions.