Foundation Capital has led a $70 million funding round in ad tech company AdRoll. New investors in the company include Institutional Venture Partners, Northgate Capital, Performance Equity and Glenmede. Existing investors in AdRoll include Merus Capital, Accel Partners and Peter Thiel. Eric Liaw of IVP will join AdRoll’s board of directors as a board observer. The company formerly raised a total of $19 million prior to this funding round.
AdRoll, the world’s most widely adopted retargeting platform, announced today that it closed a $70 million funding round led by Foundation Capital. New investors include Institutional Venture Partners (IVP), Northgate Capital, Performance Equity and Glenmede, who join existing investors Merus Capital, Accel Partners and Peter Thiel. In conjunction with the financing, Eric Liaw of IVP will be joining the AdRoll board as a board observer. Prior to this round, the company had raised a total of $19 million.
“In just a few years, retargeting has become as essential as search engine marketing for every digital marketer,” said Aaron Bell, AdRoll CEO. “The new funding lets us hit the gas on our ambitious vision to more broadly become the one platform for companies to better understand their customers and reach them wherever they go. It’s a pleasure to both bring back the close-knit investor team that has helped us scale and welcome new investors with exceptional late-stage and public experience.”
Beyond expanding the product portfolio, AdRoll plans to use the new investment to deepen its new cross-device offering to reach customers on mobile devices. The company also plans to continue to build momentum around the globe while maintaining its consistently high level of customer service.
The funding news coincides with a $150 million annualized revenue run rate for AdRoll, which now serves 15,000 customers in more than 100 countries. Every month, AdRoll’s intelligent algorithms make more than 50 billion ad bidding decisions based on the shopping behavior of over 500 million unique shoppers. That is more activity than even Amazon sees.
Leading companies across all verticals—including Zendesk, New Relic, and Alex and Ani—turn to AdRoll to engage returning and potential customers with relevant, data-based advertising across the web, mobile devices, and social channels. “Retargeting with AdRoll is a key technology that we couldn’t live without. One of our most pressing concerns in marketing is how to deliver the right message to the right customer or prospect, and AdRoll continues to give us the best expertise, technology and inventory sources to accomplish that task,” said Bill Macaitis, Zendesk CMO. “The company has a unique vision and I’m excited to see what’s next for AdRoll.”
More screens, more opportunity
The recent launch of AdRoll Retargeting for Mobile plays an important role in achieving AdRoll’s product vision. The new product is the only single-console solution for advertisers who want to target desktop site visitors across social media, mobile apps and the mobile web. With mobile retargeting, advertisers can identify high-intent desktop user segments and target them across mobile devices to drive app installs and conversions through Facebook and Twitter.
“Display advertising spend attributed to real-time bidding is projected to exceed $9 billion dollars by 2017,” said Charles Moldow, General Partner of Foundation Capital. “A very select group of advertising technology companies is poised to capture the majority of that spend. We’re eager to support AdRoll because they offer businesses of all sizes a single platform that unites all of their digital advertising channels and devices.”
“We’re thrilled to partner with AdRoll’s outstanding management team and existing investors to deliver on the company’s vision of simplifying online advertising for all customers,” said Eric Liaw, Principal of IVP.
AdRoll leaders Adam Berke, Greg Fulton, and Lauren Vaccarello also recently published The Retargeting Playbook, the definitive guide to retargeting for every marketer. The book, already a top-selling business book on Amazon and Barnes & Noble, provides a valuable combination of industry perspective, best practices, and proven strategies.
AdRoll is the global leader in retargeting, with over 15,000 active advertisers worldwide. The company’s innovative and easy-to-use marketing platform enables brands of all sizes to create personalized ad campaigns based on their own website data, ensuring maximum return on online advertising spend. With a 97 percent customer retention rate, AdRoll provides unmatched transparency and reach across the largest display inventory sources, including Google AdX, Twitter and Facebook.
The company is backed by leading investors such as Foundation Capital, Institutional Venture Partners, Northgate Capital, GlenMede, Accel Partners, Merus Capital and Peter Thiel. For more information, please visit www.adroll.com.
About Foundation Capital
Foundation Capital is dedicated to the proposition that one entrepreneur’s idea, with the right support, can become a business that changes the world. Foundation Capital has helped companies like Atheros create the mobile Internet, EnerNOC invent the energy demand response market, and Netflix revolutionize media distribution and consumption, among many others. Foundation Capital is currently invested in more than 80 high-growth ventures in the areas of consumer, information technology, software, semiconductors, and clean technology including BoardVantage, Chegg, Coverity, Lending Club, MobileIron, Simply Hired, Sunrun, TubeMogul and Venafi. Foundation Capital’s nineteen IPOs include Control4, Envestnet, Financial Engines, Netflix, NetZero, Responsys and Silver Spring Networks. For more information, visit www.foundationcapital.com.
About Institutional Venture Partners (IVP)
With $4 billion of committed capital, Institutional Venture Partners (IVP) is one of the premier later-stage venture capital and growth equity firms in the United States. Founded in 1980, IVP has invested in over 300 companies, 98 of which have gone public. IVP is one of the top-performing firms in the industry and has a 33-year IRR of 43.2%. IVP specializes in venture growth investments, industry rollups, founder liquidity transactions, and select public market investments. Since its inception, IVP investments include such notable companies as ArcSight, Buddy Media, ComScore, Concur Technologies, Dropbox, Fleetmatics, HomeAway, Juniper Networks, Kayak, LegalZoom, LifeLock, Marketo, MySQL, Netflix, ngmoco, Polycom, Pure Storage, RetailMeNot, Seagate, Shazam, Snapchat, Supercell, Synchronoss, Tivo, Twitter, and Zynga. For more information, visit http://ivp.com or follow IVP on Twitter: @ivp.