Hangar Networks Raises $10 Million

Hangar Networks Inc., a New York-based provider of advertising solutions via dry cleaners and patented “EcoHangers,” has raised $10 million in Series B funding. ABS Ventures led the round, and was joined by return backers Sigma Partners and Kodiak Venture Partners.

 

PRESS RELEASE

 

Capitalizing on strong market traction with advertisers and strategic partners, Hanger Network (hangernetwork.com) announced today a $10 million Series B Financing round, led by ABS Ventures with participation from existing investors Sigma Partners and Kodiak Venture Partners. Scott Yaphe of ABS Ventures will join Bob Davoli and Chip Meakem, Series A lead investors for Sigma and Kodiak, respectively, as members of the Hanger Network's Board of Directors.

 

Hanger Network In-Home Media provides national and regional marketers with advertising, promotion, and sampling programs delivered directly into the home via its patented EcoHangers and through its proprietary network of 35,000 dry cleaners. The result is a highly targeted and efficient in-home marketing platform that is invited into the home, viewed in an uncluttered environment, and good for business and for the environment.

 

EcoHangers provide a focused and customized reach, with several delivery program matched to the strategic needs of today's marketers. These include national, regional, demographic, and retail/shopper Distribution Programs designed to deliver advertising around today's most important retail outlets. Major brands creating exciting advertising with Hanger Network include such blue-chip names as Revlon, Van Heusen, Joseph Abboud, Staples, Hershey's, and PSE&G.

 

“Today's advertisers face a tremendous challenge to maximize their media and marketing investments,” said Yaphe. “Amidst a sea of advertising, they need their message to be seen by their target audience, resonate with potential consumers and distinguish their brand. With EcoHangers and a proprietary dry cleaning channel of 35,000 locations, Hanger Network provides a unique vehicle for marketers to achieve these goals.”

 

“ABS, Sigma Partners and Kodiak Venture Partners recognize the power and efficiency of our business model,” said Bob Kantor, CEO of Hanger Network. “Advertisers get a unique delivery platform that drives powerful results. Consumers get a better, environmentally friendly product. And dry cleaners save money on hangers.”

 

This second round of funding, Kantor said, “allows us to further expand our reach into the 35,000-plus dry cleaners across the country, and into exciting news arenas, such as retail and hospitality. With the exception of the U.S. Mail, we have arguably the largest household reach and frequency of any ad distribution network in the country.”

 

About The Hanger Network

 

Hanger Network In-Home Media provides leading national & regional marketers with advertising, promotion & sampling programs delivered directly into the home through its proprietary network of 35,000 dry cleaners. Replacing billions of wire and plastic hangers, its patented EcoHangers have established an efficient and effective national marketing platform that's great for business and great for the environment. EcoHangers are 100% recycled and recyclable, manufactured in EPA-regulated factories in the U.S., and have proven to be stronger than wire hangers in laboratory strength tests.

 

About ABS Ventures

 

Since 1982, ABS Ventures has helped exceptional management teams build industry leading companies through its contribution of strategic, technical and operational resources. Based in Boston, the firm invests in rapidly-growing companies with innovative, market leading products or services. A sampling of ABS-backed companies include: Cascade Communications, Synchronoss, Workbrain, Telogy Networks, Trema and PowerDsine.

 

About Kodiak Venture Partners

 

Kodiak Venture Partners is a seed and early-stage Venture Capital firm focused on building high-growth, industry leading technology companies. The Kodiak's partners have deep operating and investing experience in their target markets and apply that expertise to help entrepreneurs build true market leaders. Founded in 1999, Kodiak manages three funds totaling $676M and targets companies based in eastern North America focusing on communications/wireless, semiconductor/equipment, software/services, internet/new media, and life technology.

 

About Sigma Partners

 

Sigma Partners was founded in 1984 on the principle that people are the essential element of success. That is why Sigma focuses on identifying exceptional entrepreneurs with creative ideas and supporting them in building great companies. Unlike some firms that hire venture capitalists based upon their business school degrees and finance backgrounds, we think it's much more important to have partners with experience in the trenches starting and running entrepreneurial companies. This first-hand experience allows us to give early-stage companies both tactical and strategic guidance and access to a powerful business network. We work on behalf of our portfolio companies. We know business doesn't always go as planned, but because we've invested in the best and brightest entrepreneurs, together we adapt and create success. Our investment track record is proof. For over two decades Sigma Partners has invested in over a hundred early stage companies, and our portfolio has consistently outperformed. In 2007, we raised $500 million for Sigma Partners 8, bringing our total capital under management to over $2 billion. We continue to invest today in the same way we have since our inception, by identifying great entrepreneurs and collaborating with them to build strong businesses.