Snipi Inc. has closed on a $2.52 million Series A round of financing led by Innovation Ventures.
This story first appeared in the November 21, 2011 issue of WWD. Subscribe Today.
The company does business as Sidecar, considered the first-ever 100 percent automated online marketing platform for e-commerce firms.
Also participating in the round are ARC Angel Fund, GSI Commerce founder Michael Rubin, and institutional investors NextStage Capital and Gabriel Investments. Rubin in September launched Kynetic, which includes under its umbrella Rue La La. Rue La La is 30 percent owned by eBay Inc.
Sidecar founder and chief executive officer Andre Golsorkhi said that the firm launched its product in March 2010. Prior to the latest financing round, the company was funded by friends and family and other seed investors.
The Sidecar platform automates four components of online marketing: paid search, comparison shopping, on-site personalization and personalized e-mail.
Golsorkhi said the proceeds will be used to hire staff, for new customer acquisition and for technological improvements to the platform.
So far there are 25 retailers on board, including Rocawear, Linens-N-Things, National Jean Co. and Denim Habit. The annual volume of the firms range from those doing $1 million online to those doing $500 million, according to Golsorkhi.
David Freschman, managing principal of Innovation Ventures and co-founder of FashInvest with venture partner Karen Griffith Gryga, said, “We believe Sidecar’s business and technology proposition for midmarket online retailers is unmatched in the marketplace.”
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