In today’s connected world mobile advertising is the way to get big. Don’t call up another sleazy dishonest firm, you are going to want to use Jun Group who prides itself on its ethical nature. Although it has been around for years it has recently decided to expand at a time when mobile advertising it ever-growing. From Fanta to Jeep, Jun Group is growing efficiently to a wide variety of industries. CEO Mitchell Reichgut takes us through his commendable company and its recent investors.
Who were your investors and how much did you raise?
We partnered with Halyard Capital and Bridge Bank for an investment of $28M. It’s a private equity raise and it is our first institutional partnership.
Tell us about your product or service.
Our mobile advertising platform is the honest, efficient way to get millions of people to engage with video and branded content. Eighty of the 200 leading advertisers work with Jun Group because everything we do is brand-safe, visible, and transparent.
What inspired you to start the company?
Our founders wanted to create an honest and truthful advertising company that delivered tangible value for its customers.
How is it different?
Everything we do starts with truth. We put our clients first, we tell them exactly where their ads are running, and we’re always brand-safe.
What market you are targeting and how big is it?
We’re targeting the mobile advertising market. According to eMarketer, mobile will account for 72 percent of U.S. Digital Ad Spend by 2019. The IAB says that mobile advertising grew 76 percent year-over-year from 2013 to 2014, making it the industry’s biggest growth segment.
What’s your business model?
We work with the world’s biggest brands and their agencies to distribute video and branded content to millions of people. We charge for engagement, so our customers only pay for actual results.
What was the funding process like?
As a profitable, independent company, we’ve had numerous opportunities to take funding over the years. We chose this moment because the Internet is transforming itself before our eyes from a Web-based / browser-centric experience to an app-based / mobile experience. It’s an historic opportunity and we want a big chunk of that market. Halyard and Bridge see the world the way that we do, and they share our philosophy. It’s been a long road for us, and we’re delighted to have found the right partners.
What are the biggest challenges that you faced while raising capital?
Jun Group is atypical because we grew it for many years without VC funding. Our focus has always been on delivering value for our customers and creating great products. We wanted to remain profitable and maintain our current rapid growth rate. The biggest challenge was finding partners who shared that philosophy.
What factors about your business led your investors to write the check?
We’re all excited about the opportunity in the mobile advertising space. Jun Group is a proven business and we have a unique and defensible offering that will help us capture a big portion of that market. Our ability to connect with millions of consumers in mobile applications is unique, and we’ve got a long track record of success.
What are the milestones you plan to achieve in the next six months?
We’ve experienced a 90 percent annualized growth over the last two years and we expect that to continue. We added 25 people last year, and we’re on track to grow our team at the same rate this year.
What advice can you offer companies in New York that do not have a fresh injection of capital in the bank?
Focus on your customers; build amazing products, and follow your passion. Success comes from working hard and making the right adjustments. Resist the temptation to chase trends and say what you think others want to hear. Just build something great and everything else will follow.
Where do you see the company going now over the near term?
The best part of this new partnership is that we’re not changing our philosophy. We’re going to stay focused on our customers and we’re going to keep delivering tangible value for them. For those reasons, we expect to play a big role in mobile video advertising in the coming years.
Where is your favorite place to grab a drink in NYC on a nice summer night?
For a special occasion, nothing beats Salon de Ning on the roof of the Peninsula.
Jun Group’s brand is about truth. Our mobile ad platform gets millions of people to watch video across devices in a way that’s brand-safe, visible, and transparent. Our technology runs in mobile apps, which comprise over 87 percent of smartphone usage, and we use first-party data to precisely target just the right groups. The one-two punch of scale and targeting, combined with the security of an open, honest delivery system has set Jun Group apart.