Pixalate raised $18.1 million in growth capital for its fraud protection, privacy and compliance analytics platform that monitors connected television and mobile advertising.
The latest round of funding saw Western Technology Investment lead the charge and Javelin Venture Partners was second. This brings Pixalate’s total funding up to $22.7million. Jalal Nasir (founder and CEO at Pixalate) said that this includes the $4.6 million Series A funding round in 2014.
With offices in London and Palo Alto, the company analyzes more than 5 million apps from five different app stores, and more than 2 billion IP addresses on 300 million connected TV devices. This allows it to report fraudstery for customers. According to Nasir, invalid traffic can be found in more than 40 different types.
Nasir grew up going to livestock shows with his grandfather and learned how to spot defects in animals, and he has carried that kind of insight to Pixalate, which can detect the difference between real and fake users of content and if fraudulent ads are being stacked or hidden behind real advertising that zaps smartphone batteries or siphons internet usage and even ad revenue.
Digital advertising is big. According to Nasir, research by the Association of National Advertisers estimates that $200 billion in global digital advertising will be made this year. This figure is more than the $10 billion that was spent in 2010 and 2010. He also said that ad fraud is estimated to cost the industry $35 billion annually.
Nasir stated that advertisers are willing to pay a premium in order to reach the right audience based on their consumption data. Unfortunately, the data could not have been authorized or transmitted to them without their permission.
Pixalate is not like other companies that focus only on the first-party risk. Instead, they are taking a more third-party approach due to users spending so much time using their phones. The company discovered that only 16% of Apple apps have privacy policies, while 22% of Google’s app stores do. He said that more privacy regulations and crime mean advertisers need more information.
This funding will be used to improve privacy and data features in its product and expand its London office. A new Singapore office has also been opened.
Since 2014, the company has grown 1,200% in its revenue and now collects over 2 Terabytes per month. Nasir plans to monitor some Chinese-based apps, including the five Pixalate stores.
Javelin Venture Partners managing director Noah Doyle is monitoring the digital advertising industry. He said that as networks grow, each linkage point opens up a spot in an app for bad actors to enter. This was not possible in the past and advertisers must find a way of protecting it.
Doyle said that Amin (Bandeali), and Jaalal, had a great insight into the potential fraud and devised a way to fix it.” We were impressed with their vision and insight to develop an analytical approach to capture every transaction in a sequence of transactions. This will provide comprehensive visibility that can help marketers and advertisers maintain high quality advertising.
Publiated at Thu, 02/09/2021 12:53.39 +0000