IN THE PRESS: 7 Ways Investors Can Gain Clarity While Conducting Technical Due Diligence  Read More

NEW FUNDING: Why Volition Capital Invested in Doing Things Media (DTM)  Read More

VOLITION NEWS: Claude de Jocas in Built In Boston: Local VC Firm Fuels Startups Targeting Underserved Groups Despite Funding Slowdown  Read More

NEW FUNDING: Why We Invested in US Mobile  Read More

SCALING SUCCESS PODCAST: Sean Cantwell interviews Paul Melchiorre for Scaling Success  Read More

Volition
Capital+ Ad Tech

Ad tech is going through a tectonic shift because of regulatory and privacy changes, the rise of CTV, and consumer behavioral changes, creating an opportunity for startups.

discover
Investing in Ad Tech

Digital advertisers have been on a test-and-learn odyssey the past few years as they’ve adapted to emergent technology, shifts in consumer behavior, and impending changes to third-party data tracking. Despite these challenges, the ad tech market is booming – overall deal volume went up 82% from 2020-2021, and digital advertisers are projected to spend $240 billion this year alone.

While there has been lots of money flowing into the vertical over the past couple of years, we have always held the contrarian view based on a commitment to understanding the complexities and history of the sector. The prevailing notion today is that the walled gardens of Google, Facebook, and Amazon will dominate the ad tech future, but there is an imbalance of time spent by consumers on the open web and the percentage of digital ad spend outside of the walled gardens. This creates an opportunity and we’re interested in digging deeper to unlock opportunities others might be overlooking.

 

Why We’re Getting Involved

For digital marketers, the strategy has always been to find creative new ways to reach people where they are consuming content. And right now, people are consuming video – lots of video. By 2023, nearly 3.5 billion users will watch streaming or downloaded video at least once per month on any device.

Video is versatile, effective, and offers digital marketers a dynamic, less intrusive method of communicating with their audiences, with higher engagement rates. In the ad tech sector, we see video-creating opportunities in three distinct areas: (1) CTV advertising, (2) digital online, and (3) social media.

 

What We Believe

Ad tech is a complex and nuanced ecosystem. We’ve been studying and following the ad tech industry closely for years to understand the successes of many startups and avoid the pitfalls of others. This is an industry that evolves faster than any other sector where we have invested. These changes are brought on by a multitude of factors such as regulations, new platforms or ad formats, changes from the walled gardens, and more. These nuances require an investor that deeply understands the intricacies of the ad tech ecosystem to adapt to a fluid market.

OUR FOCUS

We have a multi-pronged viewpoint on the ad tech sector from our investments in ad tech, media, and ecommerce. This view allows us to identify unique challenges facing multiple constituents and look for solutions in the market. We are most excited about how video and changing consumer behavior is shaping the future of digital marketing. Although we are also spending time evaluating how privacy updates will impact targeting and the opportunities developing from shifting agency ad budgets.

 

 

OUR EXPERTISE

When investors were shying away from ad tech companies in 2015, Volition Capital was actively looking for investment opportunities in this sector. We have always felt that advertisers are looking to diversify campaigns to limit their dependency on the walled gardens, which creates an opportunity for ad tech startups such as Visual IQ (acquired by Nielsen), where we helped track attribution beyond last-click to optimize campaigns, Connatix that helped comScore 100 publishers add more video content to their websites and increase monetization, and most recently Doing Things Media, capitalizing on the growth of social platforms as a native online publisher. These partnerships coupled with our ecommerce and DTC portfolio give us a unique perspective on the ad tech market. We are excited to take our expertise in scaling businesses to $1 billion+ in revenue, and partner with founders that are leading the solutions to solve ad tech’s challenges.  

Portfolio Companies
Related Thought Leadership

The age of streaming is in full swing, and with it the rise of AdTech terms to define the new era of content consumption.…

Emily Pawlak - 04/6/22

This adage that it is impossible to get something for nothing holds true on the internet and social platforms. If I can…

Jim Ferry - 04/3/22

A common dialogue during Volition calls goes as follows: “One of our key focus areas is Adtech…”, to which the…

Emily Pawlak - 04/15/22

It may be surprising to learn that the average US household uses 8.8 streaming services, up from just 4.0 services in…

Jim Ferry - 05/2/22

The cookie — the small piece of computer code that lets advertisers track user behavior online — is about to become…

Emily Pawlak - 05/3/22

Digital advertisers have been on a test-and-learn odyssey the past few years as they’ve adapted to emergent technology,…

Jim Ferry - 05/4/22

Over the past decade, consumers have become increasingly aware and sensitive about how companies use and manage their…

Emily Pawlak - 06/17/21

Volition Capital Leads Investment to Close Gap Between Consumer Demands and Publisher Capabilities New York, October 24,…

Larry Cheng - 10/24/17

Read the full article on MarTechSeries.com Highlights: Connatix, a next-generation video technology company for publishers,…

Lindsey Eckerd - 06/17/19