As agencies increasingly turn to automated
systems to buy media and manage online ad campaigns, more money is flowing to startups that provide that technology. In that vein, digital media-buying platforms MediaMath and Traffiq both announced
new venture capital funding Monday.
New York-based MediaMath secured $12.5 million in venture capital and debt financing, with the $10 million venture investment led by Safeguard
Scientifics, Inc. and including QED Investors and European Founders Fund. The $2.5 million in debt financing came from Silicon Valley Bank.
Started in 2007, MediaMath says it serves billions of
ads per month through its platform on behalf of 20 agencies, including the major holding companies.
Online ad marketplace Traffiq, meanwhile, has raised $10 million in a second-round venture
financing led by Grotech Ventures and Greenhill SAVP and including prior investor Court Square Ventures. In connection with the investment, Grotech general partner Steve Fredrick and Greenhill
managing director Brian Hirsch have joined the New York-based company's board of directors.
Last month, New York-based Traffiq announced partnering
with Havas Digital to automate online media planning and buying in the agency's New York, Boston and Chicago offices. Both companies' systems are designed to help streamline the notoriously outdated
process for online media planning and buying that includes faxes and paper notes. The startups are also competing with established players such as Donovan Data Systems and MediaBank in pushing to
develop state-of-the-art media-buying systems.