New York startup SimpleReach has raised new funding and replaced its CEO, founder and former CEO Edward Kim tells Term Sheet. New funding for the "content data platform" startup totals $9 million, led by Spring Mountain Capital. Hal Muchnick, formerly of DoubleClick, Kontera, AddThis, and LowerMyBills, will become CEO.
This news is notable for two reasons:
1. In the last year, investors have viewed any startups related to advertising and marketing as toxic, in part, because the category was over-capitalized and VC portfolios are over-exposed to struggling assets.
But last month's sale of Moat, an ad verification startup, to Oracle for a reported $850 million has renewed interest in the category. Kim says after the Moat deal, "a ton of folks" that had passed on investing in SimpleReach "emailed [him] right away saying, ‘We want to catch up.'" It was too late -- Kim says SimpleReach had raised "more than enough capital" and doesn't want to take more dilution than needed.Read Complete Article