The funding round was led by private equity firm Level Equity, with previous investors Signia Venture Partners, Draper Nexus, and DFJ Frontier also participated. MomentFeed has raised more than $38.3 million to date.
The plan, according to MomentFeed CEO Nick Hedges, is to use the funds to grow its product team, in both engineers and product managers.
“We already had a large engineering team when I joined the company,” Hedges told us. “We have decided to double the size of the product team this year.”
“That is how you accelerate a product roadmap,” Hedges told Localogy Insider in a video interview conducted on Thursday. He added that MomentFeed late last year brought on a new CTO, Ana Martinez, to lead the expanding engineering team. Hedges and Martinez worked together at the sales software firm Velocify.
Notably, MomentFeed will not use the funds to add any headcount in sales or marketing, Hedges said.
MomentFeed’s market focus is helping multi-location brands do localized marketing, including listings, social media, mobile marketing, and reviews management.
The company has branded the concept of Proximity Search Optimization, which is essentially the combination of disciplines required to optimize for being found in a proximity-based search.
Earlier this month the company unveiled a Proximity Search Optimization Dashboard that helps multi-location marketers more track the key factors MomentFeed says are needed to target and convert local consumers.
Helping Brands Manage Through the Crisis
Hedges also told Localogy that MomentFeed became profitable this year, and has not been negatively impacted by the COVD-19 crisis.
“It has become more important than ever to get the right information onto all of the digital channels that consumers are looking at,” Hedges said. “So we saw a lot of growth in interest in using our platform.”
MomentFeed saw a big spike in demand for changing and updating information on business locations. It also has also seen an uptick in demand among multi-location brands for local social functionality. The more clever brands, Hedges said, have used social media to improve customer engagement during the crisis.
Buyer, not a Seller
We also asked Hedges if the current business environment will produce consolidation among localized marketing platforms, digital agencies, and the like. He said yes, and that MomentFeed will be a buyer, not a seller.
Hedges explained that he was brought in to scale the business. And this will involve both organic growth and acquisitions.
“We intend to be one of the platforms that acquire others,” he said.
Hedged added that he didn’t expect MomentFeed to begin making acquisitions before it completes the product build-out, which means it will likely go into acquisition mode in 2021.
Here is a video of our complete interview from Thursday.
You can listen to the full interview with Nick here.