A leader of the Silicon Beach tech scene just closed a $70 million Series D round.
Santa Monica-based adtech solution VideoAmp announced its latest financing earlier today, which sets the company’s total funding raised to date at $106.6 million.
The funding came from Raine Group LLC, which contributed $50 million, and Ankona Capital, which contributed the remaining $20 million. Founded in 2014, VideoAmp has expanded from its LA HQ and now holds offices in New York, Chicago, Boston and Amsterdam as well.
VideoAmp helps advertisers more deeply understand the success of their video brand marketing. Traditionally companies will spend millions of dollars, as well as swaths of time and energy, perfecting an advertisement and ensuring it reaches its target demographic — factors based primarily on age and location.
Yet, according to VideoAmp, just 3 percent (three!) of the $1.3 trillion spent on brand marketing annually was traceable to actual sales. Essentially, advertisers may pour their heart and soul into a project all they want — but very few are actually tracking the concrete success of those ads.
VideoAmp solves this conundrum by providing its clients with a combination of software and data tools that help them understand the success of their advertisements based on factors like in-store visits, online conversions and other in-depth metrics.
Among the companies turning to VideoAmp to better understand their consumers are Oracle, Nielsen, Tubi, A+E Networks and more.
Per the Wall Street Journal, VideoAmp plans to use its fresh funding to build out its data and customer support staff to better serve its clients old and new.
The company, by all standards, has been making an impact. According to the company’s website, it has helped optimize more than $10 billion worth of advertising to date. The company reported profitability in 2018 and closed the year with a reported $20 million in revenue.
This internal growth may be setting the stage for a future acquisition. As the Wall Street Journal points out, adtech firms like AppNexus have been acquired for hundreds of millions of dollars in recent years.
