Ethical video advertising agency Good-Loop has secured a seven-figure investment to expand into the US and European markets.
The Edinburgh-based start-up has closed a $1.6 million (£1.2m) seed funding round from a consortium of investors led by You & Mr Jones, the global marketing tech group established by David Jones, former chief executive of advertising giant Havas.
Good-Loop, which partners with companies such as Nestlé, Unilever, Coca-Cola, Toms, H&M and Amazon, will use the cash injection to grow its commercial teams overseas, particularly in the lucrative US market.
The service aims to drive the effectiveness of digital advertising by rewarding viewers of online video ads, donating on their behalf to a chosen charity.
In addition to You & Mr Jones, which is a lead investor in social media heavyweight Pinterest, the funding round included New York-based investment firm Quaestus Capital Management, SIS Ventures, MarTech angel group, Galvanise Capital and the Scottish Investment Bank, the investment arm of Scottish Enterprise.
The start-up intends to launch a further funding round in early 2021 to drive its expansion in the US, which currently accounts for 30 per cent of the global ad market.
Good-Loop, which launched in 2016, also counts Skyscanner co-founder Gareth Williams among its backers.
Amy Williams, co-founder and chief executive of Good-Loop said: “This round of funding will help Good-Loop to further our mission of connecting people, brands and good causes around the world.
“Bringing You & Mr Jones and our other investors into the business at this stage will add a huge amount of value above and beyond cash as we prepare to scale up our operations.
“With industry luminaries like David Jones supporting us, we’ll be well positioned to deliver innovative marketing technology, industry-leading social insight and truly impactful brand purpose.”
The funding deal comes months after The Business Roundtable announcement, in which the heads of more than 180 US companies agreed to give social responsibility as much emphasis as financial performance.
To date, Good-Loop has raised more than £500,000 for charities around the world and is on track to achieve its target of £2m by 2021.
Kerry Sharp, director of Scottish Investment Bank, added: “Good-Loop is the latest great example of an idea rooted in Scotland being embraced across the globe.
“The mission and values of this Edinburgh-based business, centred on being a positive force, aligns with Scottish Enterprise and the Scottish Investment Bank’s aims of building a better, fairer future for all. We’re excited to see how Good-Loop continues to grow with the support of You & Mr Jones and the rest of our investment partners.”