The fresh funds will be used to accelerate the Edinburgh company’s product roadmap, including the development of tech aimed at reducing digital advertising’s “substantial carbon footprint”. The business also plans to expand its international teams, including opening new offices in New York and Chicago to serve its growing US markets that currently make up a third of total revenues.
The funding round was led by New York-based investment fund Quaestus Capital Management (QCM), with additional backing from Scottish Enterprise, impact investor SIS Ventures, European ad tech fund First Party Capital and investment raised on the crowdfunding platform Seedrs. It brings total investment into the “ad tech for good” platform to some £6m since it was formed in 2016.
Chief executive Amy Williams, who founded the company alongside chief technology officer Daniel Winterstein, said: “At the heart of our industry is an inherent value exchange between advertiser and consumer, and I’m on a mission to harness that value as a significant force for good.
“Through our respectful, positive ad platform, brands can treat people online as partners - rather than targets - united by a desire to have a meaningful social impact.”
Austin Davis, chief executive at QCM, added: “Good-Loop elevates advertising and conscious-minded business to an entirely new level and will become the industry Fairtrade Stamp.
“The business model solves many longstanding issues in the sector and is the paradigm shift that has been needed to regain consumer trust in transparent and ethical advertising.”