The round indicates investor demand for personalized advertising campaigns is growing
Israeli startup Dynamic Yield announced Tuesday the raise of a $22 million Series C funding round led by Vertex Ventures and ClalTech. Baidu and Munich-based Global Founders Capital also joined the list of new investors.
“We are finally at a stage where machine learning and AI allow product and marketing teams to build such experiences that are uniquely relevant to an individual, said Dynamic Yield CEO Liad Agmon in a press release, who said half the company works in data science, engineering and product teams.
“Personalization is all about communication and relevancy. As a consumer, I react much better to marketing communication that addresses who I am, my current interest and my current state of mind.”
Dynamic Yield is one of several startups using machine learning to create customer-specific advertising and catering to website visitors, but they have been in the game for a while looking back at their $12 million round back in 2014.
They offer personalized messaging, recommendations, personalized emails, automatic A/B testing for communications and services on mobile.
ClalTech CEO Daniel Shinar and Vertex’s Aviad Ariel will join the board of directors. Existing investors Bessemer Venture Partners, Marker LLP and Innovation Endeavors also took part in the Series C round.
Recent rounds in personalization-focused startups include automated video company Wochit ($13 million) Video startup SundaySky ($30 million), email startup PowerInbox ($6.5 million), and Irish push email company Boxever ($12 million).
A couple others focused on the email realm include Reelevant and Ownpage out of Paris, the latter focusing on newsletters. Video-based players include Waterloo-based Vidyard and Brightcove.
They claim some heavy-hitting clients like Under Armous, The CT, Sephora, PacSun and Rolling Stone. Thus far they claim to have personalized 500 different communiqués to customers on behalf of their clientele.
“By mastering personalization at scale, Dynamic Yield has created a new field,” Vertex Ventures’s Aviad Ariel said in a press statement. Vertex, active across the Israeli venture scene, has previously invested in user-generated video startup WebyClip, which focused on eCommerce.
“Having built a strong engineering team and a world-class product, Dynamic Yield is poised to take full advantage of a great market opportunity, and we’re very pleased to be able to back them.”
Founded in 2012 by Agmon and Omri Mendellevich. They have offices in Tel Aviv, New York, and Berlin.