Ad Tech Company GumGum Secures $75 Million In Funding

Recently, global technology and media company GumGum announced that it has received a US$75 million investment from Goldman Sachs Growth to accelerate the growth of its content-related advertising products.

Founded in 2008 and headquartered in Santa Monica, California, GumGum uses natural language processing and computer vision to develop solutions to help marketers serve ads across display, native and digital video channels, including OTT TV.

The company currently works with more than 100 major brands and 1,200 leading publishers around the world.

Goldman Sachs Group Inc., founded in 1869, is a leading global investment banking, securities and investment management company. Goldman Sachs Growth is the firm's investment platform with more than 25 years of investment history, more than $8 billion in assets under management and nine offices around the world.

According to the Wall Street Journal, GumGum has raised a total of $122 million and is currently valued at nearly $700 million, roughly three times its value two years ago.

The new investment, GumGum’s largest to date, will be used to more broadly deliver its proprietary context API and context-enabled display, native and video (OTT & web) products, and will expand and Accelerate its investments in key international markets.

Interest in contextual targeting continues to grow as marketers look for alternatives to third-party cookies. As mainstream advertising targeting tools continue to change, coupled with the epidemic causing media investment to shift more broadly to digital channels such as OTT and connected TV, more and more marketers are adopting solutions like those provided by GumGum.

Allison Berardo, vice president of growth at Goldman Sachs, said in a press release: "Cookies are being phased out and consumer privacy regulations are becoming more stringent. We believe GumGum can benefit from this market change. , because its contextual technology offers an alternative for brands."

Phil Schraeder, CEO of GumGum, said: "Goldman Sachs' investment further validates the value of GumGum's contextual technology and expertise. GumGum not only perfects contextual technology but also executes creatively to enhance performance."