Mediatool, headquartered in Stockholm and renowned for its media management platform catering to global brands and advertisers, has revealed the successful completion of a new funding round, amassing 80 million SEK (equivalent to €7 million).
Mediatool, the media management platform, is poised for significant growth in the American market with the recent injection of €7 million in funding. The funds will underpin the company’s imminent expansion into the United States, catering to the surging demand for its platform. In line with this expansion strategy, Mediatool plans to inaugurate a new office in New York during the first quarter of 2024.
Alexander Högman, CEO of Mediatool, underscores the profound significance of this investment, expressing eagerness for the collaboration with key investors, Fairpoint Capital and eEquity. Högman highlights Mediatool’s substantial impact on the industry, with 40 percent of the company’s revenue already originating from the United States. He emphasizes that now is the opportune moment to elevate the company to new heights and forge a more robust presence in the American market.
The funding round saw the inclusion of two new investors, Fairpoint Capital, a B2B technology Venture Capital investor, and eEquity, a growth investor, aligning with the company’s vision. They join existing investors such as Newion, J12, Almi Invest, and Twig, who had previously invested in the startup.
Hadar Cars, Investment Director at Fairpoint, commends the impressive journey of the Media Management Startup, stating, “We have been closely monitoring the company’s progress for several years and are genuinely impressed by what Alexander and his team have accomplished. Drawing on our experience with various SaaS companies that have achieved rapid scalability, we firmly believe that Mediatool has all the essential elements in place for a successful journey.”
Understanding the Functionality of Mediatool’s Platform
The SaaS Company serves as an indispensable media management platform, streamlining the intricate workflows of advertisers in the domains of media planning, activation, and monitoring. It stands as a central hub, uniting the oversight of all media campaigns, spanning diverse channels, campaigns, and business units.
Operated as a Software as a Service (SaaS) platform, Mediatool consolidates all media-related data, encompassing investment figures, audience metrics, and campaign outcomes, into a unified repository. This consolidation empowers advertisers to swiftly respond to data insights and fine-tune their strategies across multiple markets, campaigns, and brands, thereby enhancing their Return on Marketing Investment (ROMI). Furthermore, their high scalability ensures its suitability for businesses of all sizes.
Mediatool offers two distinct options: “Mediatool for Brands,” providing marketing campaigns with clarity and centralized data management, and “Mediatool for Agencies,” enhancing service delivery across diverse client portfolios, delivering substantial advantages for advertising agencies.
Traditional ERP systems have long excelled at managing payroll, supply chain logistics, and sales costs. However, media spending, a substantial line item on the Profit and Loss (P&L) statement, has often been left in the realm of spreadsheets, even among large global advertisers equipped with robust IT systems.
This is precisely where Mediatool emerges as a transformative solution, designed to meet the needs of global enterprises with intricate marketing departments and major media agencies.
Jessica Mattson, Deal Partner for eEquity’s investment, explains the motivation behind their support, stating, “During our due diligence, we conducted interviews with several US-based retail giants, only to discover that they manage billions of dollars in media spend primarily through spreadsheets. Mediatool’s innovative solution addresses this conspicuous void.”
She goes on to highlight the significant potential in the market for a modern, adaptable, and dependable SaaS Media Management solution, which remains largely uncharted. Mattson expresses their enthusiasm in finding Mediatool as a pioneer in this ‘blue ocean.’
In 2023, the startup successfully onboarded several of Europe’s most prominent advertisers, cementing its status as an industry leader. The company also collaborates closely with some of the world’s largest advertisers and leading media agency networks to streamline the management of their clients’ campaigns.
At present, Mediatool oversees media budgets exceeding $6 billion (approximately €5.675 billion) for more than 70 major advertisers, firmly establishing itself as a key player in the media management arena.