NYC-based advertising technology company MediaMath raised USD 225 Million from investment firm Searchlight Capital Partners in an atypical large funding round. MediaMath raised more than USD 500 Million in funding to date, and its latest round values the Company above USD 1 Billion according to a person familiar with the matter.
A partner at Searchlight Capital, Darren Glatt, said the company saw MediaMath to be an attractive investment because “scaled demand-side platforms with strong data-management platforms are the true winners [in the ad-tech] ecosystem.” The Company operates a demand-side platform, which allows advertisers and agencies to buy online ads using automated systems, and a data-management platform, which lets advertisers store and analyze data.
MediaMath Chief Executive Officer, Joe Zawadzki, said the Company would use the funding on acquisitions and to accelerate its development of technology including identity, artificial intelligence, connected-television and digital out-of-home advertising. MediaMath has grown every year for the past 11 years and now the marketing industry is seeking to reevaluate the “next set of capabilities that need to get invented and implemented.”
The advertising tech sector is in a period of turbulence as Google and Facebook dominate the market, while dealing with Europe’s new data legislation in the General Data Protection Regulation that came into effect in May. According to investment bank LUMA Partners, there were 77 mergers and acquisitions in ad-tech, marketing-tech and digital content sectors in the U.S. in the second quarter of 2018.
Some of the new funds will be toward a publicly-traded technology investor, Safeguard Scientifics, that said in January it would stop investing in new companies during a cost-cutting drive. Searchlight Capital Partners are also currently invested into cloud-computing service Rackspace, background music platform Octave Group and U.S. cable TV company Hemisphere Media Group.