The vendor also appoints a new CEO.
Zak Stambor , Managing Editor
Social media marketing startup SocialWire has raised $1 million in what it called a “seed extension” funding round.
New investor SoftTech VC led the round, which also included existing investors First Round Capital, 500 Startups, Accelerator Ventures and venture capitalist Joi Ito.
The vendor, which raised $2 million in seed funding last November, plans to use the new capital to develop its Dynamic Product Ads Platform. The platform uses Facebook’s targeting capabilities to help retailers present consumers with customized ads featuring products they might like based on their stated interests and locations.
For example, a man who lives in Chicago and Likes golf equipment manufacturer Taylor Made Golf Co. Inc. on Facebook might see an ad on the social network for a golf retailer’s store in Chicago featuring a new Taylor Made driver. A similar shopper who lives in a Chicago northern suburb and Likes golf equipment manufacturer Callaway Golf Co. might see an ad for the retailer’s suburban location featuring a new Callaway driver.
The vendor also announced it promoted chief revenue officer Bob Buch to CEO. From August 2010 to September 2011, Buch was AOL Inc.’s vice president of business development, according to his LinkedIn profile. From April 2007 to May 2010 he was vice president of business development and monetization at social news web site Digg.
The vendor says it considers this a “seed extension funding round” because it still is focused on product development, whereas at the next step, a Series A money raising round, investors will expect the company to have a product to sell. “We believe that technology must be at the core of what we do if we are going to solve important problems—and our seed investors understand that technology is not built overnight,” wrote Bob Buch in a blog post.
SocialWire says its clients include ShoeDazzle Inc., No. 221 in the Internet Retailer Top 500 Guide, and LivingSocial Inc., No. 119.