Compass Labs Gets $6M Worth of New Funding

Compass Labs has recently achieved a milestone for 2012 as they acquire a new round of funding worth $6 million. Aside from expansion, they will be using the funding to further their sales and marketing efforts. This particular round was participated in by New Enterprise Associates (NEA) and Presidio Ventures.

The company’s CEO Dilip Venkatachari shares more about this exciting news in this recent e-interview with Lead411:

Who are your competitors and how are you different from them?

We are unique in our ability to extract marketing intelligence and audience insights from public social content.  By applying science to social media advertising, our CLIQ social media advertising platform provides the tools necessary for more precise targeting, enhanced ad performance and deeper campaign and audience insights.  And, CLIQ supports social advertising across all social networks and apps, including Facebook, Twitter and LinkedIn and is available as both a self-serve or fully-managed solution.

What percentage of your marketing budget is spent on the following?

We are just starting to spend on marketing, so up until now we have been focused primarily on PR-related efforts for Compass Labs.  With our recently announced round of funding, our goal is to increase our sales and marketing spend roughly along the following lines:

A.                  Advertising – 30%

B.                  Social Media Marketing – 10%

C.                  SEO – 5%

D.                  PR – 15%

E.                  Direct Marketing – 10%

F.                  Other – 30%

What marketing tactic has given you the highest ROI?  What percentage ROI do you get back on this?

Up until now, the majority of our efforts have been PR related, but we are looking to change this in 2012 and increase our marketing efforts.  So, ask me again in 6 months.

What do you plan to spend your new funding on?  Product development?  Marketing?

We will use our funding to invest further in the development of CLIQ (Compass Labs IQ), our social media advertising platform, grow our ad sales team, increase our marketing efforts and expand into international markets.

If this is your first round of financing and you’re the CEO, how many hours did you put into working on getting your financing?  Was that taking up the most of your day?

We have built a strong market position for Compass Labs, which helped us to attract quality investors for our initial Series A round and for our most recent raise of $6 million from NEA and Presidio Ventures.  As a result, I was able to better balance investor meetings and stay focused on growing and scaling our business

If you are the CEO, what are your biggest challenges?

The biggest challenge I face is ensuring our team stays laser focused on our strategy and is executing to plan.  When faced with such a rapidly growing and changing market, like social media, it is easy to run off-course.  Rising above the noise and getting everyone on the team to clearly articulate our distinctive market position to customers and partners is critical to our continued success. 

How many employees do you have?

We currently have almost 30 employees in the US, based primarily in San Jose, CA and New York, NY.

When were you founded?

Compass Labs was founded in 2009 by a team of industry veterans and scientists.

How much did your revenue increase (if any) this year over last year?

Given we are a private company, we don’t share our revenue growth figures.  However, social media advertising spend is rapidly increasing and eMarketer predicts that by 2014 US social ad spend will hit $5.6 Billion.

Want to read more on their new funding? You can read on their press release here.