New York-based startup Innovid, an interactive video advertising company that counts Facebook and Walmart among its major clientele, announced a $27.5 million Series E funding round on Thursday. It is their second eight-digit round of the year following a $10 million investment back in March.
Investors include NewSpring Capital, Sequoia Capital Israel, T-Venture (Deutsche Telekom’s investment arm), Cisco Investments, and Genesis Partners. Silicon Valley Bank and Triple Point Capital contributed $12.5 million in debt financing.
The company uses a SaaS business model, hoping to avoid traditional strategies in the sector like ad buying. Innovid’s flagship product, Atom, lets customers create and optimize videos across multiple media that incorporate different ad formats. Last year, Facebook’s advertising platform Atlas presented Innovid as their adtech platform provider.
“This is the first step towards re-thinking how ad-serving across the industry should be executed,” CTO Tal Chalozin said about the deal with Facebook last year.
Earlier this year, Innovid integrated ad intelligence software from Integral Ad Science into its solutions. Innovid’s platforms include analytics on time earned, impressions, full video views, in-unity activity and downloads. They maintain a large gallery of videos they’ve made for different verticals, including a massive collection for several automotive companies.
An interesting group of investors
NewSpring maintains a portfolio of more than 100 companies with four funds focused on information technology, healthtech, debt financing, and control buyouts. Other recent deals include participation in a $50 million Series C for LookingGlass Cyber Solutions, $3.3 million for Journey Sales, and $5 million out of a $12 million round for health IT company Verisma.
It’s also the second funding announcement from Cisco Investments in the last week, after a smaller though industrially significant $2.5 million investment in the accelerator network Startupbootcamp. Cisco Investments has a few other media companies in its portfolio, including Apalya, Blackarrow, Digitalsmiths, Igivision Technology, Exent, Nimbus, Qwilt and Qyuki (and no, it doesn’t count in Scrabble).
An impressive run considering the general state of adtech
As we’ve written about a number of times in the last half a year, adtech has been taking a serious nose dive. Public adtech companies are faring poorly, investors are pouring a lot less cash into the sector this year, and even the valuations of private companies like Taboola have been downgraded by half because of these market circumstances. This makes it all the more impressive that Innovid has been able to raise two large rounds this year. They must be delivering high ROI to make this possible.
The company was founded in 2007 by CEO Zvika Netter, MD Zack Zigdon and CTO Tal Chalozin. They’ve collected several tech pioneer awards and recognitions from the likes of Digiday, the World Economic Forum, and TIME. The startup maintains offices in New York, Los Angeles, Chicago, London, Tel Aviv, and Sydney.
Laura Rosbrow-Telem contributed reporting.