Former Snap Employees Raise $ 9 Million For Trust, Leaving Beta To Level The Marketing Game – TechCrunch
Trust wants to give small businesses the same advantages as large companies when they market on digital and social media platforms. It came out of beta with $ 9 million in seed funding from Lerer Hippeau, Lightspeed Venture Partners, Upfront Ventures, and Upper90.
The Los Angeles-based company was formed in 2019 by a group of five Snap alumni working in various roles within Snap’s revenue product strategy business. They were creating tools for businesses to fund digital marketing success, but kept hearing customers talk about the advantage that large advertisers had over smaller ones: the ability to receive good payment terms, lines. credit, as well as data and advice.
In an effort to turn the tide on this, the group created Trust, which is a card and business community to help digital businesses navigate the ever-changing pricing models to market online, receive the same. incentives than large advertisers and make the best decision of where their marketing dollars will go the most.
Trust does this in several ways: Its card, built in partnership with Stripe, allows businesses to increase their purchasing power up to 20 times and have 45 days to make payments on their marketing investments, said the CEO James Borow at TechCrunch. Then, as part of its community, companies share their knowledge about marketing purchases and data insights typically reserved for large advertisers. Users even receive news through their dashboard around their specific marketing strategy, he added.
“Advertising platforms are walled gardens, and most people don’t know what’s going on inside, so our clients are working together to see what’s going on,” Borow said.
The growth of e-commerce is pushing for more investment in digital marketing, giving Trust the opportunity to be a huge company, Borow said. E-commerce sales in the United States grew 39% in the first quarter, while digital advertising spending is expected to rise 25% this year to $ 191 billion. Meanwhile, Google, Facebook, Snapchat and Twitter have all recently reported rapid year-over-year ad revenue growth, Borow said.
The new funding will be used to increase the company’s workforce.
“We have active customers on the platform, so we wanted to increase recruiting as soon as we entered the general version,” he added. “We are leaving beta with 25 companies and a few hundred on our waiting list.”
This list will soon grow. In addition to the roundtable, Trust announced a strategic partnership with the social shopping e-commerce platform Verishop. The company’s 3,500 merchants will have priority access to the Trust card and the community, Borow said.
Andrea Hippeau, a partner at Lerer Hippeau, said she knew Borow as an investor in his previous advertising company Shift, which was acquired by Brand Networks in 2015.
When Borow reached out to Lerer about Trust, Hippeau said this was the kind of offer that would be applicable to the company’s portfolio, which has many direct-to-consumer brands, and knows marketing is a huge issue. for them.
“Digital marketing is important for all brands, but it’s also a black box that you put marketing dollars into, but you don’t know what you’re getting,” she said. “We hear this across our portfolio: they spend a lot of money on ad platforms, but are treated like family businesses in terms of credit. When in reality Casper spends five times more than other companies. Trust understands how important marketing dollars are and puts them on better terms financially.