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Sequoia, SoftBank Passed On OfferUp Investment

Would-be Craigslist competitor OfferUp has been trying to raise about $100 million in financing for at least five months, according to people with direct knowledge of the situation. It’s been tough going, a sign of how quickly tech startups can lose popularity among investors.

Prominent tech investors, including Sequoia Capital and SoftBank, have passed on the round because they think the valuation being sought is too high—particularly given increasing competition in the mobile marketplace sector, said the people. The exact valuation OfferUp is seeking couldn’t be learned. OfferUp is currently working with Morgan Stanley to find new investors, said two of the people, who declined to be identified because the information is confidential.

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Armed with that capital, Letgo ramped up its marketing spending on TV. The marketing efforts helped the company close the gap with OfferUp among Android users, according to a person with direct access to the data. The two apps show similar rankings on the Apple’s iTunes.

Letgo couldn’t be reached for a comment.

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