SpotXchange raises $12M for video ad network

The company is backed by H.I.G. Growth Partners

Video advertising network SpotXchange announced Wednesday that it has raised $12 million in its first-ever round of institutional funding.  The round came from H.I.G. Growth Partners, and while SpotXchange has been around for several years now, the company says it is profitable despite never raising institutional funding, although the company did raise an undisclosed amount of angel funding in 2008.

Founded in 2006, SpotXchange is currently the #3 video ad network in the U.S. and the #1 network in Canada and the UK, according to comScore.  The network offers advanced targeting and retargeting tools, real-time bidding, dynamic ad optimization, and several pricing models, including cost per click, or thousand, or completed view, etc. In November, the Westminster, Co.-based company rolled out SpotMarket RTB, an enhanced version of its real-time bidding application, to better match the audience targeting requirements of advertisers, agencies, ad networks, and demand side platforms to the video ad inventory of participating publisher websites.

"The video ad network market is exploding, and SpotXchange is prepared to build upon its success and lead the market globally," said John Kim, Managing Director of H.I.G. Growth Partners, in a prepared statement. "SpotXchange's rapid expansion to date is indicative of the tremendous value the company provides to publishers and advertisers. Its technology is one of the most comprehensive and robust we've seen in the video ad market, and it has a burgeoning international presence. This investment will enable SpotXchange to continue its aggressive development and maintain its technological edge into the future."

SpotXchange plans to use the new funding to expand its video advertising platform and facilitate the company’s global expansion.

"While we've achieved significant progress and profitability without institutional funding, this investment from H.I.G. will enable us to aggressively invest for even more success," said Michael Shehan, founder and CEO of SpotXchange, in the company’s announcement. "We plan to open several international offices in the next year and significantly add to our current media sales team. In addition to growth capital, H.I.G.'s experience in the digital media world will provide us with strategic guidance during our continued expansion."

Additionally, John Kim and Nik Shah of H.I.G. Growth Partners will join SpotXchange’s Board of Directors.

Image source: spotxchange.com