The company is still trialling its technology with partners BT, TalkTalk and Virgin Media and in South Korea, but has not yet secured significant revenue. It aims to raise the capital by selling 19.4% of the company through a new share offering. In 2007, it spent $22.4m cash and made a $32.8m loss.
In a statement to the London Stock Exchange, Phorm said it "intends to use the proceeds from the placing to continue the implementation of its service in the UK and Korean markets, and for general working capital purposes, as the company continues its discussions with other ISPs both in the UK and internationally".
Phorm chief executive Kent Ertugrul said: "With the addition of these new funds, we are well positioned to deliver strong growth, as we engage with ISPs across the globe with a view to deployment in multiple markets."
The company has been dogged by controversy surrounding issues of privacy. Phorm's targeted advertising system allows ISPs to track customers' activity online to target them with relevant ads.
In April, the European Commission said it was taking legal action against the UK Government for failing to act against Phorm's system, after receiving a raft of complaints about the company. The decision sparked retailer Amazon to opt out of its system.
Phorm will publish its full year 2008 results on Thursday (11 June).
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