How This Social Content Aggregator Startup Managed to Aggregate the Right Venture Capital Funds
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As far as taking unconventional approach to problems is concerned, today’s venture capitalists and mentors have shown that their investments patterns are based on actual problem-solving and innovative models. With this being the focal point, a Tamil Nadu based startup, Synctag, has recently wooed Subhkam Ventures to lead a venture capital round that saw undisclosed investments being made into the venture.
The Funding Journey of Synctag
Sync tag which likes to call itself a web agglomerator is also endorsed as co-sell solution with Microsoft to help provide a scientific approach towards management of social, email, content and media networks.
“Synctag along with its niche strategist team is able to provide unique social media solutions to get a 20% above more and delivery value for the ads on social media and campaign virality in a relatively shorter time period,” states, Harsh Mehta Founder at Synctag, to Entrepreneur India.
As far as funding economics are concerned, Synctag received its first round of seed funding from an individual for a pre money valuation of INR 5.5 crores in 2015. Subsequently, the startup also raised another seed round in the same year for pre money valuation of INR 20 crores; which was also followed by another round at INR 35 crores in 2016.
“Through the subsequent rounds, we felt that we required a more focused investor who could help take the product into the global space. Thereby we were able to bring in private equity investor Mr. Rakesh Khatotia from Subhkam Ventures,” explains Mehta.
Key attributes to obtaining funding
Harsh states that it was the regular process of partnering with IBM and other leading AI technology companies across the globe, in a bid to provide accurate AI solution to clients through aggregation models, that got investors interested.
“The product was AI based which pricked the interest and was an uncommon portfolio of services we had to offer amidst various other product and service based industries.”
Also, USP of Synctag, as per Mehta is its unique AI model that’s built to provide maximum accuracy to end consumer on multiple data sets. As a product, Synctag has evolved past the digital marketing segment to more focused solutions in analytics, digital asset audits, and platform aggregation across web and considering the current product line to be able to provide data sets to help brands make much more value from the ads across the social media platforms.
For the newbies
Mehta has words of advice for the new AI entrants, he states that following the below mentioned approaches, startup owners could gain confidence while dealing with leading venture capitalists as far as raising post-Series A funding is concerned:
“Always believe in the core of your project
Spend wisely and yield twice more than what you have spent
Be focused on your result.”
Focus for the way forward
“I feel that AI has certainly gained some hype in India, but there is a substance deficit which leads to failure in turning around the corner,” believes Mehta.
He adds that investors still tend to prioritise conventional product-based brick-and-mortar scheme of things over intangible products.
“This perspective too is changing. Technology has risen but more is yet to come,” signs-off Mehta.