mavrck Raises $120M to Scale Influencer Marketing Platform

The Evolving Landscape of Influencer Marketing and a Significant Investment

The prominence and effect of influencers represent a major development in the evolution of the contemporary online social environment. A company capitalizing on this influencer surge, and specifically its manifestation within the marketing sector, has recently announced a substantial funding round to sustain its growth trajectory.

Mavrck Secures $120 Million in Growth Equity

Mavrck, a company that has developed a platform enabling brands and media organizations to identify and collaborate with influencers for marketing initiatives, has secured $120 million in growth equity funding from Summit Partners. The acquired capital will be allocated to further platform development and expansion of business operations. The valuation details of this funding round have not been disclosed.

“This investment will be strategically utilized to reinforce our leading-edge platform and expand our team significantly,” stated Lyle Stevens, co-founder and CEO, in an email interview. “By doing so, we aim to establish ourselves as the most intelligent platform in the market, leveraging the extensive petabytes of historical data at our disposal. This data will power sophisticated recommendation engines within the Mavrck platform, facilitating optimal connections between enterprise marketers and the appropriate creators, at the most effective cost.”

Demonstrated Traction and Growth

The company is currently demonstrating considerable progress and momentum within the industry.

Stevens revealed that the company’s “Influencer Index” – its comprehensive directory – currently features “millions of contactable macro- and micro-influencers globally, spanning all major social media platforms.” Approximately 500 brands and 5,000 marketers are presently utilizing Mavrck to connect with these influencers. Since its inception in 2014, Mavrck has facilitated connections between brands and over 3 million influencers and creators, reaching an audience exceeding 240 million consumers, primarily through authentic sponsored content across diverse media formats including videos, photos, blogs, and podcasts.

Technology and Data-Driven Matching

Stevens explained that Mavrck’s core technology is founded on proprietary algorithms and first-party opt-in data, empowering brands to locate and engage with influencers who resonate with their target audiences. The platform incorporates around 25 distinct search filters – encompassing audience demographics, past performance, and fraud risk assessment – to refine the extensive directory and identify the most suitable matches. It subsequently provides a collaborative environment for project execution and payment processing. “We also offer functionality for customers to integrate their existing influencer and consumer relationships, fostering the development of their own brand ambassador networks,” he added.

The Expanding Influencer Marketing Industry

Influencer marketing expenditure has become a substantial component of the broader marketing landscape, experiencing a 55% increase in the past year. Currently, approximately two-thirds of brands are implementing an influencer marketing strategy in some capacity. The industry is now estimated to be valued at $100 billion.

Concurrently, Stevens highlighted the rapid expansion of the creator economy, noting that an increasing number of individuals are pursuing content creation as a secondary or primary income source. He referenced eMarketer data indicating that approximately 50 million people identified as “creators” in 2020. A recent Harris Poll revealed that 30% of children aspire to become “YouTubers,” surpassing the 11% who aim to be “astronauts.”

Supporting the Creator Economy

“Our objective is to empower this emerging creative class by connecting them with leading consumer brands, enabling them to transform their passions into viable earning opportunities,” Stevens stated.

Analyzing Influencer Impact Across Platforms

The role of a company like Mavrck extends beyond simply connecting marketers with influencers; it also involves monitoring the impact of influencer content. While various platforms contribute, with blogs remaining relevant for specific products and demographics, social media applications currently dominate in terms of overall reach.

Stevens pointed out that Instagram remains the most popular platform for influencer content, a position reinforced by the platform’s algorithmic content display introduced in 2016. However, this dominance is beginning to shift. “TikTok’s ‘For You’ Page algorithm is gaining market share from Instagram, as evidenced by a 400% year-over-year increase in the number of creators activated on TikTok by our brand clients,” he said. “Should this trend persist, we anticipate TikTok to become the leading platform for influencer marketing within the next five years.”

The Enduring Relevance of Influencer Marketing

Regardless of which platform ultimately prevails, Stevens firmly believes that influencers and influencer marketing are not a fleeting trend, but a permanent fixture in the marketing ecosystem.

“Consider your most recent purchase; it’s likely you were influenced or persuaded by the opinions and displays of others online, rather than direct brand messaging,” he explained. “These individuals can be friends, like-minded strangers, or creators you actively follow. This concept of social proof has become a crucial tool for brand building. Following the onset of COVID-19 and the subsequent changes in consumer behavior, consumer engagement with creators has increased by 70%. Consequently, brands are investing more in social proof to not only succeed but also maintain relevance and ensure survival.”

This compelling narrative has proven influential in attracting investment as well.