L2, which provides market research to consumer brands, announced it has raised a $16.5 million growth-stage investment from General Catalyst Partners. The New York-based company, founded by NYU marketing professor Scott Galloway, also announced the addition of two new board members: Paul Sagan, an XIR and partner at General Catalyst, and Larry Bohn, managing director of General Catalyst. This is the first investment Sagan has made since he joined General Catalyst in January.
L2 Raises $16.5 Million from General Catalyst Partners to Expand Subscription Business Intelligence Offering and Global Presence
Funding to Accelerate Development of L2’s Digital IQ Index®
Former Akamai CEO Paul Sagan Joins L2 Board as Non-Executive Chairman
NEW YORK, NY – March 12, 2014 – L2 today announced it has closed a growth investment round of $16.5 million from General Catalyst Partners to accelerate the development of its subscription business intelligence service and expand its global presence. The company will deploy the investment to deepen existing benchmarking of digital footprints of leading brands and real-time reporting to fuel the company’s growth in Europe, Asia, and Latin and North America. L2 also named two experienced former technology and media executives to its board, including Paul Sagan, an XIR and partner at General Catalyst, who will become L2’s non-executive chairman, and Larry Bohn, managing director of General Catalyst.
The company was founded in 2010 on the belief that a brand’s digital competency is inextricably linked to shareholder value. L2 uses proprietary research and tools, combined with academic rigor and progressive design, to provide managers with visibility into a brand’s digital performance. L2 is tracking over 5,000 global brands and works with the prestige and consumer sectors’ largest and most iconic enterprises and brands. L2 founder & CEO Scott Galloway is also a founder of Prophet Brand Strategy, a global brand consultancy with 350 professionals, and Red Envelope. He is also a Clinical Professor of Marketing at NYU Stern School of Business.
“L2 is a valued partner helping to increase the digital IQ of P&G Beauty’s brands and people, which we believe has a direct correlation to value creation. We turn to L2 to assess our brands’ on-line performance globally and enable our business teams to turn insights into action,” said F.D. Wilder, Jr., Vice President of Global Beauty Digital & Ecommerce, Procter & Gamble.
L2’s Digital IQ Index® (DIQ) provides customers with actionable data-driven insights on dimensions including site, digital marketing, mobile and social media at a fraction of the cost of traditional consulting. Through proprietary technology and methodology, DIQ registers 850 data points across a brand’s digital footprint to highlight strengths and weaknesses and has become the industry standard for determining a brand’s digital competency.
“We wanted to partner with other entrepreneurs and a firm with a record of helping companies deploy technology to reshape markets. General Catalyst brought both,” Galloway said.
“I’ve known Scott for almost two decades and have been tracking the development of L2’s influence on industry,” said Paul Sagan of General Catalyst. “Many of our portfolio companies and industry contacts referenced the value L2 delivers. L2’s formidable client base confirmed our confidence in the DIQ,’s ability to offer insight, discipline and cost-effectiveness in a notoriously opaque market.”
L2 is a subscription business intelligence (“BI”) firm focused on digital innovation. L2 was founded on the notion that digital competence is inextricably linked to shareholder value and that ongoing BI can replace episodic consulting engagements with actionable insights at a fraction of the cost. The L2 Digital IQ Index® is the globally recognized benchmark for digital performance of consumer brands. L2 collects more than 850 data points across four dimensions (Site & E-Commerce, Digital Marketing, Social Media, and Mobile) and has assembled the largest data set to-date to diagnose brands’ digital strengths and weaknesses relative to peers. For more information, visit: www.l2thinktank.com.
About General Catalyst Partners
General Catalyst Partners is a venture capital firm that makes early-stage and growth equity investments. The firm backs exceptional entrepreneurs who are building innovative technology companies that transform industries, including KAYAK, Demandware, Stripe, Airbnb, The Honest Company, Warby Parker, Datalogix, BigCommerce, Snapchat, HubSpot, and Datto. The General Catalyst partnership leverages its broad experience to help founders build market-leading businesses. General Catalyst has offices in Cambridge, MA, Palo Alto, CA and New York City. For more information, visit: www.generalcatalyst.com or www.twitter.com/gcvp.
On Wednesday, March12, L2’s CEO Scott Galloway is announcing a $16.5 million growth investment round from General Catalyst Partners to develop L2’s subscription business intelligence services and expand its global presence. The company serves the prestige and consumer sector’s largest and most iconic companies, and its Digital IQ Index is the globally recognized benchmark for digital performance of consumer brands. This is the first round of outside investment L2 has raised in its history.
L2 is also announcing the addition of two experienced tech and media executives from General Catalyst to its board, Paul Sagan, an XIR and partner at General Catalyst, who will become L2’s non-executive chairman, and Larry Bohn, managing director of General Catalyst. This will be the first investment Sagan has made as a part of the General Catalyst team.
L2 CEO Scott Galloway is also a founder of Prophet Brand Strategy, a global brand consultancy with 350 professionals, and Red Envelope and is a Clinical Professor of Marketing at NYU Stern School of Business. Galloway and Sagan have known each other for 20 years.
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