Connectivity has secured a $6.35 million Series A funding round led by Greycroft Partners, with participation by Rincon Venture Partners, Daher Capital, Double M Partners, TenOneTen Ventures, Eytan Elbaz and SLP Ventures.
Led by Connectivity CEO Matt Booth, also advisor to BIA/Kelsey, the technology relies on social signals that let businesses identify their customers, their worth to the business, how often they visit and the best way to reach them.
The technology allows businesses to monitor what consumers say about them across thousands of social media sites, online communities, and review sites like Facebook, Twitter, Instagram, and Yelp, as well as Google, Bing, and Citysearch. The chatter helps identify what keeps consumers coming back and what keeps them away.
Board member Sean Moriarty said the talent makes the company. When asked how the company plans to address others that might offer a similar service, he said it's a challenge, but "you're betting on the approach to market, the quality of the team, and the pace of execution."
Connectivity’s product powers 11% of the customer monitoring services on the market, behind the free service Alerts offered by Google, which holds 37% market share, per BIA Kelsey.
Connectivity, which supports about 92,000 paid software as a service (SaaS) accounts, was profitable prior to taking on the financing. Product sales grew more than 1,000% from 2012 to 2013. The company was initially privately financed with no outside debt or equity.
Execs at Connectivity -- parent company of local search sites YellowBot.com and weblocal.ca -- point to Nielsen stats to define the market opportunity combining search, mobile and social media. A Nielsen report estimates 55% of tablet users and 47% of smartphone users search and read reviews of recent or future purchases. Some 21% of tablet owners and 26% of smartphone users rely on social media to comment on a purchase.
Moriarty said the company has the "flywheel going and they should not only be able to maintain momentum, but keep it building."