A Shift in the Social Media Landscape: Crowdtap’s Innovative Approach to Consumer Engagement
In a move that signifies a significant milestone for the startup ecosystem, Crowdtap, a platform connecting brands with consumers to create promotional social media content, has announced that it has secured $5 million in Series B funding. This development comes on the heels of its previous $7 million Series A funding in 2011.
A Testament to Crowdtap’s Success: Why Less Can Be More
When startups fail to secure larger funding rounds following their initial Series A funding, it is often interpreted as a sign that they could not muster sufficient interest from investors. However, Crowdtap‘s co-founder and CEO, Brandon Evans, attributes the company’s decision to raise a smaller round to its ability to achieve profitability in 2013.
From Seed to Success: Crowdtap’s Journey So Far
At the end of 2013, Crowdtap became profitable, tripling its monthly recurring revenue over the course of the year. This milestone marks a significant achievement for the startup and underscores its commitment to innovative business practices.
Key Partnerships: The Secret to Crowdtap’s Success
The company now boasts an impressive headcount of 55 professionals who work tirelessly to facilitate connections between brands and their target audience. Some of its notable clients include Verizon, P&G, Nestle, Kraft, Clorox, AT&T, and Sony.
Creating a Community: The Heart of Crowdtap’s Success
Evans emphasizes the importance of building its own consumer community in keeping users engaged over a prolonged period. This approach allows users to interact with a diverse range of brands, inspiring them to create quality content that resonates with their target audience.
An Explosion of Social Listening and Marketing Products: What Does it Mean for Crowdtap?
In a rapidly evolving social media landscape, the startup has had to adapt and innovate in order to stay ahead. Evans notes that while there has been an explosion of social listening and marketing products, "inspiring consumers to create quality content … is still relatively new." This observation highlights the potential for Crowdtap to carve out its own niche in the market.
The Series B Funding: A Partnership with Foundry Group
The $5 million raised by Crowdtap was led by Foundry Group and included participation from notable investors such as Tribeca Venture Partners, Alta Communications, and The Mustang Group. Evans attributes the decision to raise a smaller round to its existing investors, allowing the company to "continue building on our trajectory without overly diluting the company."
Insights into User-Generated Content: A Study Conducted by Crowdtap
Earlier this month, Crowdtap released a study in partnership with Ipsos Media CT and the Social Media Advertising Consortium, which revealed that user-generated content accounted for 30 percent of respondents’ consumption time. This data provides valuable insights into the significance of user-generated content in media consumption.
Conclusion: The Future of Crowdtap
With its innovative approach to consumer engagement, notable partnerships with leading brands, and significant funding from reputable investors, Crowdtap is poised to make a lasting impact on the social media landscape. As the startup continues to build upon its trajectory, one thing is clear – its commitment to innovation and adaptability will be crucial in navigating an ever-changing market.
