Native promoting startup ZypMedia is saying that it has raised $5.6 million in Collection C funding.
That’s comparatively small amount of cash for a Collection C (the corporate had beforehand raised $6.9 million complete, in response to Crunchbase), however co-founder Aman Sareen mentioned, “We had the opportunity to raise a lot more, but we chose not to.” In reality, Sareen mentioned ZypMedia grew to become worthwhile final yr.
So the brand new funding spherical ought to permit the corporate to proceed increasing its product lineup and its group — it has plans to double its headcount in america and India over the following yr — whereas nonetheless leaving room for natural development.
“We didn’t want to be a cautionary tale [like] other previous adtech companies,” Sareen mentioned. “We are buckling down for the long haul … We didn’t want to necessarily raise money just for the sake of it.”
Sareen based ZypMedia together with his former faculty roommate Ramandeep Ahuja, in addition to former Present TV govt Mark Goldman, with the intention of serving to native broadcasters transfer into programmatic promoting.
The concept is to assist these media corporations provide campaigns that may attain advertisers’ desired audiences throughout conventional and digital channels, comparable to show, video (together with over-the-top), social media and native promoting.
“Local digital advertising has been very neglected,” Sareen mentioned. “It’s a huge market, and our goal was to be one of the leaders. I’ll be honest, it wasn’t an easy to task, but we have been decently successful in our mission.”
“Decently successful” means signing up companions like Sinclair Broadcast Group and Univision. It additionally means enlisting Archer Enterprise Capital because the lead investor within the new spherical. (Present traders US Enterprise Companions and Sinclair additionally participated.)
“Not only have Aman and Ramandeep created a superior tech stack for delivering local advertising, they’ve also developed a really smart and defensible business model, partnering with local media companies to act as their direct sales force,” mentioned Archer Managing Director John Hadl within the funding announcement.
And finally, the imaginative and prescient goes past bringing incremental income to conventional media corporations. Sareen argued that ZypMedia’s mannequin positions it proper on the intersection of conventional and digital promoting.
“Within next two-to-five years, digital or linear, over-the-top or over-the-air, it will jump through one platform,” he mentioned. “Everything will use the same technology and currency.”