Adchemy Lands $19 Million Investment
Demonstrates Company’s Strength and Growth in Expanding Online Customer Acquisition Industry
REDWOOD CITY, Calif.--(BUSINESS WIRE)--Adchemy, Inc., a next-generation online customer acquisition technology company, today announced it has secured $19 million in funding led by Mayfield Fund with additional investments from Hellman & Friedman, LLC., and existing investor August Capital. Founded in 2004, Adchemy develops software that is revolutionizing the world of online customer acquisition by combining advanced scientific algorithms with Web data to target, engage and qualify customers.
“We are active in the online advertising industry and had been tracking Adchemy for a while. They have strong relationships with their customers, and a solid reputation for being a highly innovative company with groundbreaking technology”
The online advertising market grew by 50 percent from 2006 to 2007 and in the first six months of 2007 generated $10 billion in revenue in the United States, according to the Internet Advertising Bureau. Adchemy is building on this market momentum with its current product, Adchemy Actions™, and a new product to be released in the spring of 2008.
The Adchemy Actions product is designed to connect consumers with companies that are best suited to satisfy their needs, giving marketers the most targeted information and delivering qualified users in a cost-effective manner. It has been adopted by a roster of leading enterprises in the financial services and career education markets including Charter One, The Art Institute Online of Pittsburgh – Online Division, Capella University, Saint Leo University and South University. With Adchemy Actions, customers have experienced a two to five times increase in average return on investment.
“The market for online advertising is witnessing a gigantic shift today as consumers and marketers mine the potential of the Web,” said Murthy Nukala, founder and chief executive officer of Adchemy. “As the economics of online advertising move from a cost per impression or cost-per-click to a cost-per-action model, marketing departments transform from cost centers into revenue hubs. This is a profound shift and we are singularly focused on being a strategic partner to Chief Marketing Officers across all of their customer acquisition programs.”
“We are active in the online advertising industry and had been tracking Adchemy for a while. They have strong relationships with their customers, and a solid reputation for being a highly innovative company with groundbreaking technology,” said Yogen Dalal, Mayfield Managing Director. “We believe the company has a talented founder and management team who have a unique vision of how their technology and algorithms will transform the online advertising landscape.”
Yogen joins Rajeev Motwani, Stanford University professor and co-author of the PageRank paper that led to Google’s founding, and John Johnston of August Capital to serve on Adchemy’s board.
“Our partner Adchemy is a highly innovative company with powerful technology that has enabled us to adopt new approaches to analyze and target our information to prospective customers,” said James Plum, executive vice president of Charter One.
In addition to venture capital, Adchemy has received investments from private investors in the Internet and marketing technology space. They include Georges Harik, co-developer of Google AdSense, Josh Kopelman, co-founder of Half.com, and investor Terry Garnett as well as Ashish Gupta, Pat House and M.R. Rangaswami.
Adchemy develops software that is revolutionizing the world of online customer acquisition. The company’s mission is to combine the vast amount of data on the Web with its advanced scientific algorithms to give marketers a powerful product suite designed to significantly increase qualified users and reduce acquisition costs, turning marketing into a revenue engine for companies. For more information, visit www.adchemy.com.