Private equity firm Summit Partners has provided growth capital of $120 million to influencer marketing agency Mavrck, a sign the advertising industry is increasingly looking to tastemakers and social media stars as the creator economy continues to grow during the pandemic.
The valuation of the Boston-based company wasn’t disclosed. As part of the deal, Summit Partners’ Michael Medici and Sophia Popova, managing director and principal, respectively, have joined Mavrck’s board, according to a statement provided to Bloomberg News.
Founded in 2014, Mavrck is a technology developer for major consumer brands to source work from influencers of all magnitudes, providing performance-based insights throughout the advertising campaign process. The agency’s platform is used by brands to select creators with certain attributes, and to access pricing, analytics and contact information. Netflix Inc., Walt Disney Co. and DoorDash Inc. are among Mavrck’s customers, according to its website.
“Brands are increasingly seeking to harness the power of the very long tail of content creators to help drive brand awareness and influence purchase activity,” Popova said in the statement. “Mavrck’s platform is purpose-built to support brands in these efforts.”
The jump from previous investments “speaks to their level of growth and the opportunity in the market,” Medici said in an interview. Previously, Mavrck had only raised $19 million, according to data provider PitchBook.
“We believe through our market work that marketers are shifting meaningful dollars into influencer strategies, and the time to dominate the market is now for a company like Mavrck,” he said.
Social influencers and content creators have become a big swoon for the business of advertising, and where the industry is headed. But for Mavrck, the business saw a distinct turning point following the outset of the coronavirus pandemic, according to co-founder and Chief Executive Officer Lyle Stevens.
“Candidly, in the first couple of months we thought Covid-19 would be detrimental to our business,” Stevens said in an interview. “Many of our marketing partners paused everything, but what we saw mid-April to mid-May of 2020, we started to see engagement rates spike” during the pandemic for clients working with creators of do-it-yourself content.
While a $1.3 million loan as part of the paycheck protection program from the U.S. government helped keep the business going, Stevens said that by the third quarter, “We started seeing companies shift budgets from live events and other areas to influencer marketing.”
“The net impact was very positive,” he said. “The great resignation that everyone keeps talking about, more people keep seeing that they can become a creator also.”
Goodwin Procter LLP served as legal counsel to Mavrck, while Summit Partners was advised by law firm Kirkland & Ellis LLP.
