In May, Divergent Ventures led the series A investment round for ReadyPulse, the most comprehensive enterprise software platform for user generated content (UGC) integrating full disclosure, permissions, and compliance.
We invested in ReadyPulse because its technology is data driven, clearly increases its customers’ online revenue and the company has a great team. ReadyPulse is in our theme of data driven apps that use new database, cloud infrastructure, and advanced algorithms to solve new kinds of problems for customers. While the social and web analytics category is noisy, so far of the companies we have looked at only ReadyPulse has demonstrated a clear linkage to generating their customers’ revenue with differentiated underlying technology. Finally, we watched the team, meeting with them several times starting a year in advance to investing. We were impressed with their insight and tenacity in product development and sales.
Social media marketing has upended the $500 billion advertising business by giving brands a way to leverage user generated content (UGC) for credibility and awareness. UGC is lower cost, more viral and more trusted than brand generated content. Millenials trust social media recommendations 50% more than brand generated content.
The ReadyPulse team comes from Amazon and Microsoft and has solved the very hard problem of automatically identifying and scoring UGC; getting author approval to use the content and posting UGC adjacent to the product or brand being referenced. Previously online marketers would manage UGC manually, identify a portion of the available UGC and inconsistently get author approval. This exposes brands to higher operating costs and legal risk.
ReadyPulse works with over 60 brands including Reebok, Viacom, GoPro, O’Neill, RedBull, Smith Optics, and Red Wing Shoes. ReadyPulse tracks millions of social interactions on a daily basis, and assigns a Pulse Score, an indicator of quality, to the social content and users, so a brand can curate their best content from the overwhelming amount available.
Pulse Marketing Suite is backed by a patented algorithm that enables the identification of a brand’s best digital influencers, and actively recruit them as opt-in brand ambassadors. Pulse Marketing Suite is an end to end solution for large brands, focusing not only on displaying the content that’s already available about a brand, but also focusing on managing the people who have the potential to create the best content for a brand.
We believe ReadyPulse has already begun to change marketing with authorized user generated content. Brands and online retailers are realizing that their best user content drives commerce, and ReadyPulse is in a perfect position to lead the market with excellent customers, a great team and patented technology.