Edinburgh-based ad tech company that converts people’s attention to ads into donations to good causes, Good-Loop has raised $6.1 million (£4.5 million). The Series A round was led by New York-based investment fund, Quaestus Capital Management (QCM), with additional backing from Scottish Enterprise, impact investor SIS Ventures, European ad tech fund First Party Capital and investment raised on the crowdfunding platform Seedrs. This brings the total investment into the ad tech for good platform to $8.2 million (£6 million).
The fresh capital will enable the company to boost its product roadmap, including the development of new solutions aimed at reducing digital advertising’s substantial carbon footprint. Bullish on the growing U.S. markets that currently comprise 33% of total revenue,
It will also expand the international teams, including opening new offices in New York and Chicago.
Founded in 2016 by Amy Williams and Daniel Winterstein, the startup is on a mission to make the connection between brands and consumers more meaningful by delivering respectful ads that have real social impact while also driving significant business and brand uplift for advertisers.
Amy Williams, co-founder and CEO, Good-Loop said: “Through our respectful, positive ad platform, brands can treat people online as partners -- rather than targets -- united by a desire to have a meaningful social impact.”
Austin Davis, CEO, QCM said: “Good-Loop elevates advertising and conscious-minded business to an entirely new level and will become the industry Fairtrade Stamp. The business model solves many longstanding issues in the sector and is the paradigm shift that has been needed to regain consumer trust in transparent and ethical advertising that not only provides superior results to advertisers but does it while making great contributions to the world through philanthropic giving.”
The startup’s ad formats motivate people to watch an entire ad online by allowing them to ‘unlock’ a free charitable donation at the end of each spot. This strategy allows advertisers to receive more meaningful brand engagement, while appealing to consumers’ goodwill by providing a cost-free means of philanthropy. This results in an average ad recall 4.5X higher than the industry standard. Designated charities receive 50% of ad revenue and its current clients include Unilever, PepsiCo, Nestlé, Levi’s, adidas, NBC Universal and Nike.