Israeli-American startup PowerInbox announced today the close of has raised $6.5 million in new Seris A funding.
PowerInbox’s offering revolves around the dynamizing of the emails you get with animation, horizontal scrolling and customization that should rival the personalization you see whenever you scroll the web. Instead of seeing ads directly targeting your interests in your browser, you’ll get that in the email itself, a boon for advertisers who still see email as the most effective and direct way to reach returning customers.
The round was led by Battery Ventures, Maverick Ventures and Genesis Partners. With the close of the funding, Maverick’s Libby Novak is now slated to take a seat on PowerInbox’s board.
They have already announced that new widgets will be installed thanks to the funding that integrates more personalized video, timers, tickers, RSS and social media feeds.
“By making our customers’ emails more Dynamic, real-time and personalized, we increase user engagement rates by more than 30% versus traditional emails, enabling our customers to increases sales from their emails,” PowerInbox CEO Jeff Kupietzky tells Geektime. “We also enable customers to place their ads or content in newsletter emails which some people have called Taboola or Outbrain for email.”
The capital D refers to their primary service, DynamicMail. They also have a content recommendation engine called RevenueStripe to which, CNN, ABC, New York Magazine and even Myspace (yes, Myspace), are reported to have already signed on to. Their tech is ESP-agnostic (email service provider), making it open for a wide range of channels.
Clients can choose between a monthly subscription or a revenue sharing model similar to YouTube, wherein a business sending out emails offers ad space within the email to other companies, with the former company getting a cut from PowerInbox.
“PowerInbox has invested heavily in creating the technology that best recommends the right piece of content to each user and can be rendered on the right email client platform. We’ve automated all the work to make this run at scale across all platforms,” he tells Geektime, boasting the addition of some 100 corporate clients in 2015 that include bigwigs like GM, MSG, HBO and Showtime. That also includes 2,000% growth in revenue last year, according to the company. Their press release also estimates an additional $3 of revenue per thousand email opens.
The company was originally founded by Aryeh Mergi in 2007 as ActivePath before merging in 2012 with the US-based first iteration of PowerInbox. The team splits its staff between New York and Petah Tikva in Israel’s tech corridor.
The recently raised cash will also be used to increase staff in both countries, especially for further sales and marketing.