Israeli startup Taykey, which develops technology for identifying online trends that improve advertising performance, has announced the completion of a funding round for $6M
Israeli startup Taykey, announced today (Wednesday ) the completion of their third round of funding for $6M. The current financing round was led by Tenaya Capital along with current investors in the company, Sequoia Capital, Softbank Capital and Marker.
Real-time advertising optimization
Taykey was founded in 2009 by Amit Avner, Itai Birnbaum and Omer Dror to try and penetrate the market of online advertising optimization solutions. The company’s technology can make a match between advertising trends and hot topics of conversation on the net using special algorithms and a scanner engine which trolls over 150 Web information sources and social networks. Analyzing these sources, Taykey zeros in on the hot trending topics and purchases the relevant keywords for search engines and advertising networks to keep ad feeds up on the latest.
Co-founder and CEO Avner explains that today most companies are competing in the space of matching demographic-based segmentations with data obtained from target content, rather than analyzing an active social environment. Consequently, advertising online as it works today does not provide real value to advertisers. Providing segmentation and relevance of advertising to the target audience is not enough.
Avner believes the solution offered by Taykey is far more profitable for advertisers, and they’ve so far run over 100 campaigns in 2013 alone. Amit adds that since the company is approaching profitability, they’ve decided that this is the right time to raise a small investment that will allow it to expand their workforce and further grow the company.
In an interview with Geektime, Avner related that it’s difficult to raise money for Ad-Tech. There are approximately 400 companies already competing in the market with only about 30 of them showing significant gains while the others remain in a difficult position. Avner claims that the most of these companies have ineffectual technology and have raised money based on promises they can’t deliver on so the bottom line is that their customers aren’t coming back. The fact that Taykey has not raised a substantial sum of money from investors so far and yet they’ve managed to not only survive but grow in the market, helps prove the advantage of their technology.
Amit adds that the vision of Taykey is to create a billion dollar company. They want to be a platform that offers all the tools to advertisers so they can post under ‘What’s happening now’, media, content, creative and of course Insights on what happening with the target audience in real time.
Amit further points to what he believes is a misperception of what Taykey is and does. He makes it clear that they’re not a social media publicity firm, but rather a company specializing in real time advertising with social media being only a part of what they do. Taykey handles banner advertising, video, etc. while social media accounts for less than 50 percent of its activities.
In recent months, the company opened offices in San Francisco, Chicago and London alongside their New York and Herzliya offices. Taykey plans on using the current funding to invest in R&D and expanding its workforce. Today, the company has around 50 employees and they would like to double that headcount over the coming months. They have already begun the hiring process.