Home TV VideoAmp Enters Serious Growth Mode With $70 Million In New Funding

VideoAmp Enters Serious Growth Mode With $70 Million In New Funding

SHARE:

Video tech startup VideoAmp is on a hiring spree, thanks to a $70 million cash infusion.

The round, announced Wednesday, was led by investment bank The Raine Group, which kicked in $50 million. Ankona Capital contributed the rest, bringing VideoAmp’s total funding to just over $100 million since 2014.

VideoAmp isn’t taking any money off the table, said company CEO and co-founder Ross McCray.

Headcount at VideoAmp, which has technology to enable cross-platform measurement for linear TV and digital video, was roughly 140 when the cash officially landed in the company’s bank account about a month and a half ago.

But VideoAmp plans to soon hit 250 employees by hiring client success folks and data scientists to support growth and scale the company’s enterprise sales.

The time is ripe for data-driven TV, and the pieces are finally falling into place, McCray said.

For one, the “connective tissue” exists to share data between buyers and sellers via players such as Experian, LiveRamp, Adobe and others, he said. At the same time, agencies, like OMD, are merging their linear and digital staffs into integrated video teams, while brands are starting to demand greater accountability and angle for more direct relationships with publishers.

“There aren’t really any roadblocks anymore that I see, especially not technically,” McCray said. “Now it’s more about, ‘Hey, are you getting on the train to modernization or are you not?’”

But that’s not to say it’s all smooth sailing from here.

The value exchange between media buyers and sellers is “broken,” McCray said, a disconnect that lead investor The Raine Group sees firsthand through the companies in its portfolio, which includes publishers – Vice, Cheddar, HowStuffWorks – but, until VideoAmp, no ad tech.

The Raine Group was attracted by the prospect of helping change the metrics that TV buyers and sellers trade on and injecting the transaction with more fairness.

Subscribe

AdExchanger Daily

Get our editors’ roundup delivered to your inbox every weekday.

“Media companies are getting screwed, and marketers are spending all of this money and they don’t know what’s working and what isn’t,” McCray said. “We’re trying to help sellers make the transition to selling on outcomes, which also generates more value for clients and increases yield.”

VideoAmp will also use its fresh funding to open offices in Boston and Baltimore and expand its footprint in existing locations, including Los Angeles, New York and Chicago. There are no current plans to expand internationally.

But VideoAmp could be in the market for another acquisition or acquihire along the lines of IronGrid, the data processor startup it bought in July 2018 to manage unstructured data from set-top boxes.

Expertise in data science, access to unique first-party data and anything to do with attribution are all attractive prospects, McCray said.

“We’re opportunistic – anything we can do to help eliminate friction is key,” he said. “We’re even hiring a function right now whose job it will be to always be looking at the market.”

Must Read

Nope, We Haven’t Hit Peak Retail Media Yet

The move from in-store to digital shopper marketing continues, as United Airlines, Costco, PayPal, Chase and Expedia make new retail media plays. Plus: what the DSP Madhive saw in advertising sales software company Frequence.

Comic: Ad-ception

The New York Times And Instacart Integrate For Shoppable Recipes

The New York Times and Instacart are partnering for shoppable recipe videos.

Experian Enters The Third-Party Data Onboarding Business

Experian entered the third-party data onboarder market on Tuesday with a new product based on its Tapad acquisition.

Privacy! Commerce! Connected TV! Read all about it. Subscribe to AdExchanger Newsletters

Albertsons Takes Its First Steps Into Non-Endemic Advertising, Retail Media’s Next Frontier

Albertsons is taking that first step into non-endemic advertising next week via a partnership with Rokt to serve ads to people who have already purchased groceries.

Marketecture Buys AdTechGod (No, Really)

Marketecture has acquired AdTechGod – an anonymous ad tech Twitter poster turned one-man content studio – and the AdTech Forum, an information resource hosted by AdTechGod and Jeremy Bloom.

Why The False Advertising Lawsuit Against Poppi Is Bad News For RMNs

This week’s dispatch explores the new trend of false advertising class-action suits in the food and CPG industry and how the evolution of online, data-driven retail media could exacerbate the problem.