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Percolate, a marketing technology company that helps marketers plan and publish content, has raised $24 million in a round led by Sequoia Capital, the company announced today.
The funding kicks the battle for content marketing tech supremacy up a notch. NewsCred, which began as a content licensing company but recently built functionality similar to Percolate, raised $25 million in January. Contently, which connects freelancers with brands and publishers, raised $9 million earlier this year as well. With the $24 million dollar raise, Percolate should be able to go head to head with these companies in what is becoming an increasingly hot niche in the marketing industry.
"We're pretty confident this stuff is a good idea," said Noah Brier, co-founder of Percolate, of content marketing technology. In an interview with Ad Age Monday, Mr. Brier pointed to the rise of mobile as a main driver for today's content marketing boom. "You buy a phone because you need a phone, but you use a phone for social, and at the heart of social is content," he said.
Percolate, Mr. Brier said, will use the money to bolster its international expansion and add headcount in the United States. "I hope to more than double the size of the engineering team," said Mr. Brier. "If 30 engineers walk in the door tomorrow, I'll hire all of them as long as they're great."
Mr. Brier said the money will also be used for marketing: "We'll continue to push the market and let them know what we're doing."
Percolate is looking to integrate with other tech companies in the content marketing space as well, said Mr. Brier. It is in the early stages of a partnership with Scripted, a content sourcing company, he said. To work with Scripted writers, Percolate users fill out a brief within the Percolate platform which then gets sent to Scripted writers for fulfillment. More integrations are being discussed.
NewsCred, for it's part, has taken a different approach to content sourcing. Last year, it announced the creation of its own "newsroom" made up of on-call freelancers.
Positioning Percolate next to the marketing automation giants, Mr. Brier said those companies are focused on what marketers do with content after it's been created while Percolate focuses on helping marketers create the content. It's the flip side of a technology category that's seen its stock rise of late, and to venture capitalists, at least, there's some promise there.
The $24 million brings Percolate's total announced funding to $34.5 million dollars. In February, the company also landed an investment from WPP in the neighborhood of $5 million dollars, though the exact terms are still unknown. Founded in 2011, Percolate has just north of 100 employees.