The acquisition will add more than 300 products to L’Oreal’s lineup.
The company helps its clients place ads on Instagram and Pinterest.
Brandnew IO GmbH, a Germany-based company that helps brands and retailers advertise on social networks, has raised nearly $1.9 million in seed funding.
The capital includes a $1.1 million grant from a technology program operated by the city of Berlin, where Brandnew is located, along with $845,000 from a group of Europe-based investors that includes PubliGroupe, Berlin Ventures and Lukas Kirche.
The new capital, the company says, will help it develop its technology, boost marketing and “forge new brand partnerships.” Brandnew says it specializes in “native ads,” which are marketing messages meant to mesh with the content users see on social networks. Earlier this year, Twitter bought a native ad maker called Namo Media.
“Social media is the best way for brands and agencies to reach their consumers but it can be difficult to target their audience when there are millions of users on these channels,” says Lukas Kirche, investor in Brandnew and founder of German-based media agency KircheBurkhardt. “Brandnew streamlines the process with their network of influencers and their technology. We are big believers that their product is the future of advertising.”