Spongecell transforms standard ads into dynamic, interactive digital ad experiences using data to drive creative personalization. Its CORE platform and flexible, tag-based decision engine enable real-time, data-driven creative control for brand marketers and creative agencies. The Spongecell product team co-authored the IAB Dynamic Content Standard, positioning the company to capitalize on the industry shift toward programmatic creative at scale. Spongecell positions its platform as a complementary SaaS partner alongside DMPs, DSPs and analytics tools and says it works with some of the biggest companies in the world. To support growth and product development, the company secured $10.5 million in a combination of debt and equity financing. The funding will be applied primarily to increased R&D on the CORE platform and to accelerate adoption of its self-service offering. Spongecell is an advertising-technology company that transforms standard banner ads into dynamic flash ads with rich-media-like functionality. The company works with creative agencies, media agencies, ad networks and ad exchanges to incorporate multiple actions in a single ad unit. Led by CEO Ben Kartzman, Spongecell enables consumers to choose how they interact with an ad. The company plans to use the new capital for product development, sales and marketing, executive and staff recruitment, and other working capital needs. Spongecell maintains sales offices in Chicago, Atlanta, Los Angeles, San Francisco and London. The business is based in New York City. Spongecell converts standard banner display ads into rich-media-like interactive units that can be created and implemented within days and integrated with ad-serving platforms such as DoubleClick and Atlas. Its ad formats support video, social media, interactive maps, carousels and downloadable/SMS coupons. Spongecell reports engagement improvements from 2.4% to 11.9%, with interactions two to eight times higher than average display ads. The company was founded in 2006 by Carnegie Mellon computer science graduates and previously pivoted from an Ajax calendar/widget product to focus on display advertising. It has raised prior capital (2007) from Halo Venture Partners, The Pilot Group and Silverhaze Partners and is working with around eleven large ad agencies to bring rich media to client campaigns. The startup recently secured new financing reported to be just under $1 million, providing additional backing as it expands adoption among agencies.

Total raised

$22M

Funding rounds

4

Latest round

Equity

Latest activity

Nov 2016