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Technology and the Internet

Idealab Reports $1 Billion Raised

By Karen Kaplan
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Pasadena-based Internet business incubator Idealab said it had raised $1 billion from private investors, which will tide the company over until its initial public offering. Investors in the unusually large round of funding include Dell Computer Corp., BancBoston Capital, Moore Capital Management, T. Rowe Price Associates Inc., 24/7 Media and Idealab founder and Chairman Bill Gross. Idealab, which founded such companies as EToys Inc. and GoTo.com, will use the proceeds to fund additional start-ups and to increase its stake in some of the companies it has already launched. Idealab has long been expected to file for an IPO this year. But that filing has been delayed by a federal securities law that could force it to be classified as a mutual fund, according to people familiar with the situation. Idealab is applying for an exemption.

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Technology and the Internet
Karen Kaplan

Karen Kaplan covers science and medical research for the Los Angeles Times. She has been a member of the science team since 2005, including 13 years as an editor. Her first decade at The Times was spent covering technology in the Business section as both a reporter and editor. She grew up in San Diego and is a graduate of MIT and Columbia University.

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