Mercent, a Seattle-based provider of online marketing technology, has raised $6.5 million in Series B funding. TVC Capital led the deal, and was joined by return backers Madrona Venture Group and the Hillman Company. www.mercent.com
Mercent, a provider of online marketing technology and services for retail merchants, today announced that the company has successfully closed $6.5 million in Series B financing. The financing was led by TVC Capital and included existing investors Madrona Venture Group and an affiliate of The Hillman Company. In connection with the financing, TVC Capital's managing partner Steve Hamerslag will join Mercent's board of directors.
Proceeds from this round of financing will be used to accelerate Mercent's sales and marketing activities, introduce new value-added performance marketing services, and expand advertising distribution through The Mercent Shopping Network. The retail advertising network reaches more than 200 million active shoppers purchasing consumer goods and services across more than 50 leading Internet shopping channels including Amazon.com, Google, Yahoo!, and eBay.
“TVC Capital recognizes Mercent's market opportunity and demonstrated progress at the intersection of software-as-a-service, retail e-commerce, and online advertising,” said Hamerslag. “Mercent has established a sterling customer reputation among top-tier retailers based on innovative online marketing technology that is driving the industry forward.”
Mercent recently announced new agreements with leading retail brands including Redcats Group and 1-800-Flowers; strategic partnerships with retail technology leaders Omniture, Buy.com and Shopping.com; and the launch of expanded performance marketing programs to complement the company's subscription software services.
“Mercent has made tremendous progress during its early-stage history,” said Tom Alberg, Managing Director and co-founder of Madrona Venture Group. “We're enthusiastic about the company's ability to create major returns for blue-chip retail clients like REI, PetSmart, and GUESS? by integrating online advertising campaigns directly with back-office retail operations.”
In 2007, Mercent Performance customers exceeded 900 percent average return-on-ad-spend (ROAS) through The Mercent Shopping Network, more than twice the national industry average (Forrester/Shop.org).
“We look forward to a banner year at Mercent in 2008,” said Mercent CEO and founder Eric Best. “We're excited to welcome Steve Hamerslag and TVC Capital to the Mercent team, and to build upon our success to date helping retailers generate better returns on their product inventories and online advertising dollars.”
To learn more about Mercent's shopping feed management and data feed marketing solutions, please call 206 832 3900 or email info@mercent.com.
About Mercent
Founded by veterans of Amazon.com, Mercent provides online marketing technology and services to help retail merchants optimize performance across online channels. Mercent's on-demand platform, Mercent Retail, increases revenue and gross margins by promoting the right products with the right merchandising offers and placement. Mercent Retail provides a single point of integration between existing retail management systems and a network of more than 50 leading online marketing channels including transactional marketplaces such as Amazon.com and Buy.com, shopping portals such as Shopping.com and Shopzilla, and affiliate marketing programs such as LinkShare and Performics — making it easy for merchants to automate, measure, and optimize online product merchandising campaigns through these channels. Mercent customers include 1-800-Flowers, Benefit Cosmetics, REI, GUESS?, Bass Pro Shops, Redcats Group, Celebrate Express, Levenger, and other leading retailers. Mercent is an Amazon.com Certified System Integrator, Buy.com Gold Certified Partner, and SHOP.COM Certified Data Feed Provider. The company is venture-funded and based in Seattle, WA. For more information, visit http://www.mercent.com .
About TVC Capital, LLC
TVC Capital LLC ( http://www.tvccapital.com ) is a San Diego-based private equity fund focused on the investment in and acquisition of software and software enabled service firms across a wide spectrum of industries. TVC seeks investment opportunities with companies generating revenues of $3 million to $20 million. The firm typically invests in and acquires companies that meet a mission-critical need of their customer base and are in need of capital to accelerate their growth plans. TVC is managed by Steven Hamerslag and Jeb Spencer. Recent investment include: Accordent Technologies Inc., iQ4bis Inc., and MeetingSense Inc.
About Madrona Venture Group
Madrona is an early-stage venture capital firm focused on building leading technology companies. Started in 1995, the firm has established a national reputation of partnering with entrepreneurs, investors and advisors to create value together. The firm invests predominately in seed and Series A rounds across the information technology spectrum including software, Internet, wireless and infrastructure. Madrona currently manages over $400 million while delivering top-quartile performance and 30 positive exits including: Amazon.com, Isilon Systems, Classmates.com and iConclude.
About The Hillman Company
Affiliates of The Hillman Company hold a diversified portfolio of investments, including private equity, venture capital, real estate and other alternative assets. The Hillman Company is based in Pittsburgh, PA.
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