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Friday, Jun 9, 2023

Nativo Gets $25 Million

Advertising technology platform Nativo has secured as much as $25 million in structured capital from Bay Area specialty credit firm Capital IP Investment Partners. 

Nativo will use the funding to expand upon its technology, differentiated ad formats and insights platform. The company’s platform lets advertisers push their content to consumers through varying publishers’ websites while gathering detailed insights on content engagement. Publishers can also use Nativo to create ad offerings on their respective websites and increase site monetization.

Publishers that have worked with Nativo include Hearst, Advance Local, MotorTrend and the Los Angeles Times. Nativo works with more than 3,500 publisher websites in total.

“As third-party cookies begin to disappear and the advertising industry continues to shift, brands are more focused on consideration where content plays a key role,” the company said in a statement. “With Nativo’s patented technology and insights platform — which has seen incredible market response — Nativo is uniquely positioned to connect brands with their ideal audience to drive consideration.”

Capital IP’s funding of Nativo continues the firm’s focus on the fintech space. As of last summer, the firm had invested more than $1.2 billion across more than 40 investments. Its portfolio includes exits such as content marketing platform Percolate, Tile, and semiconductor company SiTime.

“Nativo has built impressive technology that incorporates machine learning and artificial intelligence to help automate and improve the performance of branded content and its distribution. We are thrilled to partner with the company going forward as they focus on driving towards a Rule of 40 and continue to accelerate their leadership position,” Capital IP Partner Aron Dantzig said.

The rule of 40 concept mentioned by Dantzig refers to software as a service companies like Nativo that, ideally, should have growth rates and profit margins that reach or exceed 40%.

Tasked with reaching such a benchmark is Justin Choi, Nativo chief executive and founder. Choi was a founder of Cie Digital, an interactive consultancy firm and venture studio. Through Cie Digital, Choi has provided cross-industry strategic guidance to C-suite executives and first-time founders.

In 2010, Cie Games was established off the heels of Cie Digital. The social and mobile game developer found success on Facebook’s gaming platform and garnered more than 70 million installs with “Car Town.” Cie Games was acquired by Electronic Arts by way of Glu Mobile for $100 million in 2014.

Now, with Nativo, Choi has helped the company establish industry partnerships, digital content patents and funding.

“We are very pleased to have secured this financing from Capital IP, which allows us to accelerate Nativo’s growth and development without diluting our employees and shareholders,” Nativo Chief Financial Officer Rob Leff said. “Recent industry trends are favoring Nativo’s value proposition, and with this funding we will continue to make investments in our technology and talent to ensure Nativo remains a leader in driving consideration through content.”

The terms and details of the structured capital were not disclosed by either company.

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