SAN FRANCISCO -- Silicon Valley's hot streak on the initial public offering market continued Friday with Marin Software, the second area software company this week to find eager investors and a rising stock price in its debut.

The cloud marketing software company priced its stock $1 higher than expected, at $14, and increased the number of shares it sold, just as the previous two Silicon Valley companies to go public this month. In the end, Marin sold 7.5 million shares in an offering that founder and CEO Chris Lien described as "substantially oversubscribed," for a total take of $105 million and an initial valuation of about $425 million.

When Marin shares hit the trading floor of the New York Stock Exchange under the ticker symbol MRIN just before 7 a.m. Pacific time Friday, investors pushed those numbers even higher, with the initial trade going for $18.95, a 35.4 percent increase. Shares hit a high of $19.95, an increase of 42.5 percent, within minutes but soon calmed down; the stock closed at its lowest price of the session, $16.26, 16.1 percent higher than the IPO price.

Lien called the experience "exciting, humbling and very gratifying" Friday morning from New York, where he celebrated the IPO on the NYSE trading floor. "We've been building the company for seven years and this is a milestone in the development of the company, and we're extremely excited about the future," he added.

The San Francisco company follows Model N in its NYSE debut: The Redwood City software company debuted Wednesday and found gains of as much as 43.6 percent after also pricing higher than its proposed range and increasing the size of its offering. Earlier this month, Redwood City cleantech company Silver Spring Networks, a lightly regarded candidate for an IPO, also offered more shares at the last minute and found strong gains in its first day on Wall Street.

The success of Silver Spring Networks has opened the floodgates for an IPO market that has been unable to find stasis in the wake of Facebook's fumbled IPO and an uneven market roiled by politicians' gamesmanship on the "fiscal cliff." Eight companies were expected to debut this week. Record highs for the Dow Jones industrial average -- despite Congress' inability to rework the drastic budget cuts left over from the "fiscal cliff" by the March 1 deadline -- have emboldened banks and investors.

"If the IPO window opens, you jump through it ASAP ... (it) can shut anytime and without warning," Sam Hamadeh, founder and CEO of PrivCo, which follows private companies and the IPO market, said Wednesday.

Marin Software operates in a sector that has been popular on the IPO market through all the turmoil -- cloud enterprise software -- and Lien said that demand was elevated for software-as-a-service, or SaaS, companies throughout the process no matter the market conditions, mentioning the strong performances of Salesforce, Workday and smaller cloud companies.

Marin offers a twist on the standard cloud enterprise model with its software, which helps companies manage and track the effectiveness of its digital advertising. While most SaaS companies charge a recurring fee to access their software, Marin charges its customers a percentage of the media managed on the platform. Lien pointed out that other companies -- including Demandware, which had a successful IPO almost exactly a year ago -- use a similar model, giving the company comparable public companies.

More important, the CEO said, is investors' knowledge of online advertising's importance and growth potential: "Although our revenue is slightly less predictable than a strict license-based model, its leveraged to the growth of online advertising spend, which is an upward trend."

"We sit at an extremely strategic position between advertisers and publishers, and can help them further optimize their online advertising," he added.

Marin's approach has generated strong revenue growth, but the company has lost millions since founder and CEO Chris Lien established it in 2006. Revenues have increased from $7.5 million to $19 million to $36.1 million to $59.6 million in the last four calendar years, but the company has a total net loss of $64.5 million in those four years, including $26.5 million in 2012. Lien said that the company is spending a great deal now so that it can reap the rewards later, and expects to break even in 2015 with profitable years following.

Contact Jeremy C. Owens at 408-920-5876; follow him at Twitter.com/mercbizbreak.