If you’ve never heard of Precipio, you’re not alone. Same goes for Promolytics. The former is the parent company of the latter, which itself is a one-year-old promotions and discounts optimization company based in Palo Alto. It seems that Promolytics founders don’t want much publicity either. The company doesn’t have an AngelList or CrunchBase profile and has never received any coverage in the tech press.
On Tuesday, under the cover of New Years Eve, the company filed with the SEC announcing nearly $9.7 million in new funding. It appears to be the first money the company has ever raised. Judging by the filing, the round included, and presumably was led by, Emergence Capital Partners’ Brian Jacobs, who is the only non-executive listed.
According to the company’s LinkedIn profile, Promolytics was co-founded by a team that includes former Vendavo co-founder and EVP Marketing and Business Development Jamie Rapperport, who is listed as the company’s CEO, and former Anheuser-Busch InBev Global Revenue Management VP of Sales David Moran. Vendavo was itself a provider of B2B price management and optimization software. Moran and Rapperport are joined by CTO Jacob Solotaroff, who was previously the COO of MAX Systems and VP of Product Marketing and Head of Ad Sales at Match.com.
Promolytics’ website describes the company as offering “a Big Data solution to the biggest challenge in consumer goods; improving the performance of an investment that for the average consumer goods company is almost twice the size of the marketing budget, yet typically loses 50 cents on the dollar.” The company further claims it has achieved 20 to 50 percent improvement in volume sales in early tests versus traditional promotions. There’s not much more information to go on at this point.
The use of big data to drive sales and marketing efficiency could not be hotter at the moment, as commerce companies and other businesses look to squeeze a bit more margin out of their current and prospective future customers. To this end, Promolytics is in the right category at the right time. Whether the company can deliver a solution that sets it apart from the rather crowded pack of competitors remains to be seen.
It appears that Promolytics has made believers out of Emergence Capital and other ad-tech investors. As a result, Rapperport and Moran now have a sizable war chest and a plenty of expectations. We’ll be keeping an eye on the company to see how much substance is behind its bold claims.
We’ve reached out to both Promolytics and Emergence Capital for comment and will update this post with additional information if it becomes available.
[Image via GrayHardison, Blogspot]