ViralGains gets cash injection to boost machine-learning ad offer | Media Investment | Business | News | Rapid TV News
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ViralGains, which bills itself as a ‘video advertising journey platform’, has snagged $13.5 million in a Series B round.

viralgains 23 sept 2017The funding includes $10 million in equity capital from new investors First Analysis and Origin Ventures, and from existing venture investors including Stage 1 Ventures, Pallasite Ventures and LaunchCapital. In addition, the company closed $3.5 million in debt funding from Square 1 Bank, a division of Pacific Western Bank. Jim Macdonald, MD at First Analysis, which led the round, is joining ViralGains' board of directors.

With US digital video advertising spend expected to grow by double digits annually through 2020 (and Facebook and Google gobbling up most of the ad spend), ViralGains is aiming to take on the giants with a video ad approach that replaces the existing barrage of ads that, by and large, consumers don’t want to see.

To that end, ViralGains will use the funding to further invest in its machine-learning technology, which drives personalisation and closed-loop analysis. It develops video ad campaigns that go beyond a single spot by delivering different messages at each stage of the buying journey. Brands using the ViralGains platform work strategically with video to drive deep connections with individual consumers, measure attitude and behaviour in real-time, create two-way conversation and find qualified prospects with a high propensity to buy.

"What makes the ViralGains platform unique is its ability to turn the attitudes and behaviours of consumers into meaningful connections with brands," said Macdonald. "This is the first investment for our 13th fund, so we are especially excited to work with ViralGains as they transform video into an engine for turning advertising into real consumer journeys that move people to make purchases."

"As video advertising spend dramatically increases, the demand for ViralGains' proprietary machine learning platform for predicting and driving video engagement has skyrocketed," said Tod Loofbourrow, CEO, ViralGains. "Our latest round of funding is a testament to the way our platform drives the deepest engagement, consumer connection and business results for the largest and most demanding brands in the world. We are seeing bigger budgets that traditionally went to Facebook and Google as brands recognise that video isn't about two-second views or impressions; it is about meaningful engagement and sales."

The company has grown by 600% over the last three years, and so far it has attracted interest from four of the top five auto manufacturers and four of the top five banks, it said. Earlier this year, ViralGains opened new offices in Detroit and San Francisco to expand to seven key markets in the US, and secured a new, larger Boston headquarters.