Yelp, a San Francisco, CA-based operator of a Web site that connects people with local businesses, announced that private equity firm Elevation Partners has agreed to make a $25m investment in the company through the purchase of Series E preferred stock.
According to a press release, Elevation Partners will also seek to increase its total investment in Yelp to $100m through a planned purchase of shares from vested employees and other eligible shareholders.
As stated by Jeremy Stoppelman, Yelp’s chief executive officer and co-founder, the investment provides the company with the capital to focus on scaling its proven business model.
Yelp plans to use the funding to improve its market position throughout the US, accelerate growth in Canada and throughout Western Europe, and continue the development of innovative mobile applications.
In 2009, the company activated eight new US markets, launched in the UK and Ireland, and introduced four new mobile applications (for iPhone, Blackberry, Palm Pre and Android).
In conjunction with the investment and upon the closing of the transaction, Mr. Bodnick, Elevation Partners’ Managing Director and co-founder, will join Yelp’s board of directors.