Virool, a San Francisco-based video ad startup founded in 2011 by a Russian team, has closed a Series A round of $12 million. The funding, which comes from Menlo Ventures, Yahoo Japan, 500 Startups and Flint Capital, will accelerate the company’s North America, Latin America and Europe plans.
The company also aims to develop across the APAC region “with the strategic sense of Yahoo! Japan.”
“Video is growing by leaps and bounds, and that’s not slowing anytime soon. There might be skepticism about ad tech, but not skepticism about video,” 500 Startups founding partner Dave McClure told TechCrunch.
More humanity on screens
Virool, which powers more than 75,000 video campaigns worldwide, claims to have developed “a science to the placement of video creative.” In an exchange with TechCrunch, CEO Alex Debelov described his technology as being “non-intrusive,” with no sound played unless you hover your mouse over the ad.
Virool contributes to “make advertising human” and more engaging, claims Debelov. The company has developed a technology, called eIQ, which uses webcams to help advertisers understand viewers’ emotional response to their videos, TechCrunch reported.
Last month Virool introduced its Inline video ad unit, an outstream ad unit that has served client video ads across more than 2,000 publishing properties on desktop and mobile web.
Top early stage investors
A Y-Combinator graduate, Virool initially raised capital from several VCs. Among these early investors was TMT Investments, a UK-headquartered venture fund backed by Russian businessmen, which injected $400,000 in the startup in August 2012.
A few months later, the company closed a seed stage round of no less than $6.62 million, involving an impressive number of top venture funds and business angels. These included YC partners Paul Buchheit and Garry Tan, Russian billionaire Yuri Milner, Lady Gaga’s manager Troy Carter, and former Yahoo CTO Farzad Nazem.
