Capital raised will expand sales and operations
Beverly, Mass – April 13, 2010 – Searchandise Commerce, the first online media network for product manufacturers and their retail channel partners, today announced it has secured $7 million in venture capital funding. The Series 2 financing round was led by new investor Madrona Venture Group with participation from existing investors Cloquet Capital Partners LLC, DFJ Gotham Partners, Draper Associates, Inflection Point Ventures, Milestone Venture Partners and Wheatley Partners. The new financing will be used primarily to expand the sales/marketing and operations teams. The company previously raised $7.5 million in venture capital in July 2008.
“The Searchandise Commerce solution represents the “last mile” of product research, and is quickly being recognized and embraced by leading manufacturers and their retail channel partners,” said John Federman, president and CEO, Searchandise Commerce. “This new round of financing sets us up with the resources we need, both capital and expertise, to address the increased market demand and really grow the business.”
Searchandise Commerce provides an innovative service combining the efficiency of paid search with traditional, in-store merchandising practices. The service enables retailers to monetize every visitor that comes to their site, not just those who transact, creating an immediate, incremental and scalable revenue stream. Manufacturers and their ad agencies place cost-per-click bids on products to positively affect visibility across the network of retail and comparison shopping sites. Searchandise Commerce is the first media network to bring this concept to online retail.
Madrona Venture Group’s investment in Searchandise was led by Brian McAndrews who joined the firm in August 2009 as a Managing Director. McAndrews has extensive industry experience in advertising and digital media. Prior to joining Madrona, he spent eight years as CEO of the digital marketing services company aQuantive (formerly AvenueA) and senior vice president at Microsoft, leading its Advertising and Publisher Solutions group. Earlier in his career, McAndrews held management roles at ABC Inc. and General Mills. In conjunction with Madrona’s investment, McAndrews will join the Searchandise Commerce Board of Directors.
“Industry trends show that more consumers are turning to the Web to research products for both online and offline purchase, and they search retail sites 25 percent more than search engines,” said McAndrews. “Manufacturers and retailers are trying to create the best online experience possible for consumers while pulling every lever to help monetize retailer space and increase manufacturer sales. Searchandise has a great service and a great team that is focused on, and gaining significant momentum in, this huge market opportunity.”
About Madrona Venture Group
Madrona Venture Group (www.madrona.com) has been investing in early-stage technology companies in the Pacific Northwest since 1995 and has been privileged to play a role in some of the region`s most successful technology ventures. The firm invests across the information technology spectrum, including consumer Internet, commercial software and services, digital media and advertising, networking and infrastructure, and wireless. Madrona currently manages nearly $700 million and was an early investor in companies such as Amazon.com, Mercent, Farecast and iConclude, to name a few.
About Searchandise Commerce
Searchandise Commerce provides the first online media network for product manufacturers and their retail channel partners. The company offers an innovative service leveraging paid search tactics combined with in-store merchandising practices. CommerceNet, the company`s network of retail and comparison shopping sites, offers manufacturers the opportunity to use CPC bids to heighten their position within search results and product listings across the network, and provides retailers the opportunity to merchandise and monetize their online retail efforts through HitList. At both ends of the spectrum, Searchandise Commerce`s services are designed to engage prospects at the point of purchase to increase revenue and sales. For more information on the company and its services, please visit us online at searchandise.net or call 978.712.4554.