Canadian startup OutPoint raises $1.2m to help high-growth brands improve paid marketing effectiveness
OutPoint, an automated media mix modeling (MMM) platform, announced it raised $1.2 million in pre-seed funding to transform how high-growth consumer brands measure paid media effectiveness and diversify marketing investments. The funding enables the company's growth and hiring efforts, especially in its Research and Engineering functions.
San Francisco-based venture capital firms Tuesday Capital and MGV led the pre-seed round, with further backing from Entrepreneur First and Mistral Venture Partners. Additional angel investors include Andrew Macdonald (SVP, Uber), Soso Sazesh (Founder, Growth Pilots), Charlie Feng (Co-founder, Clearco), and Farhan Thawar (VP Engineering, Shopify).
Rob Palumbo, CEO, OutPoint: "OutPoint uses advances in machine learning and media mix modeling to help consumer growth teams map ad spend to revenue based on incremental lift and predicted performance. We help answer the two hardest questions marketers face: are you spending effectively, and where should you allocate your dollars to get more revenue?"
In the wake of Apple's restrictions on user tracking in iOS14+, pixel-based attribution methods no longer provide the same quality of data that marketers require to understand performance. At the same time, customer acquisition costs (CAC) are rising as well-funded brands continue to compete on the same channels, sparking a need for better tooling to measure effectiveness and get insight on marketing investment decisions.
David Jee, Associate, Tuesday Capital: "Tools for optimizing ad spend have never been more important to the success of DTC brands with Apple taking measures to restrict pixel and cookie-based tracking. We're proud to support Rob, Sean, and the team as they build the growth data science tools of tomorrow."
OutPoint has experienced strong demand from high-growth brands for its media mix modeling tools. "OutPoint is our preferred marketing data science partner for modeling cross-channel performance and understanding revenue lift. Their platform helps us decide how to scale ad spend in a way that drives rapid growth," said Will Bradley, Head of Growth at PolicyMe.
Pablo Srugo, Principal, Mistral Venture Partners: "The cost of acquiring customers has increased over 60% in the last 5 years. OutPoint's data science tools help consumer brands improve the efficiency and effectiveness of ad spend, thereby levelling the playing field."
OutPoint's platform helps marketers make reliable next dollar ad spend decisions through media mix models that reveal insight on the incremental value of paid marketing investments. "As a growth marketer, I've seen numerous companies struggle with media mix modeling and measuring incrementality. I was very impressed by OutPoint's approach, and I'm excited to invest," said Soso Sazesh, angel investor and Founder of Growth Pilots.
OutPoint was founded in January 2021 in Toronto, Canada, and serves high-growth consumer brands globally. OutPoint's founding team is Sean Billings (CTO), a senior engineer who built econometric machine learning models at Amazon, and Rob Palumbo (CEO), who led marketing at high-growth consumer companies like Properly and Borrowell. The company's sales and partnerships efforts are led by Erika Fabian, a sales leader with 10+ years of media industry experience in content development and advertising.
Kevin Lynch, Investor, MGV: "The pandemic has fueled a new wave of entrepreneurship as employees left their jobs to pursue their passions, resulting in a flourishing of DTC e-commerce startups. OutPoint is a powerful enabler of these growing businesses, and we're excited to see the platform evolve with this latest round of funding."