Crimson Hexagon Raises $20 Million to Extend Leadership in Social Data Analysis

Sageview Capital leads investment to expand global infrastructure and product depth as demand for Crimson Hexagon’s social intelligence platform swells

Crimson Hexagon, a leading provider of social data analysis to inform strategic enterprise decision-making, today announced it has raised $20 million in growth equity financing in a round led by Sageview Capital. The funding enables Crimson Hexagon to add capabilities to its solution while also expanding its global sales and marketing team and infrastructure.

The investment comes amid unprecedented growth for Crimson Hexagon. Over the past 12 months, the company’s customer base has expanded by more than 75 percent and the platform now boasts more than 10,000 active users. Over the same period, Crimson Hexagon expanded its team in the U.S. and abroad by 50 percent, growing its London employee base and staffing new offices in Chicago and San Francisco, with more to open in 2016. Additionally, the number of posts in Crimson Hexagon’s social data library has surpassed 850 billion and is on course to reach 1 trillion by the end of 2016.

“Crimson Hexagon is a true market leader with a tremendous customer list and is now positioned to expand its core capabilities to accelerate growth,” said Dean Nelson, partner at Sageview Capital. “Sageview provides growth capital to leading companies with demonstrated success and large market opportunities. We look forward to working with Crimson Hexagon as the company continues to dominate a growing market and delivers a strong return on investment for its customers.”

A mature offering in a market of upstarts, Crimson Hexagon has delivered aggressive organic growth while maintaining capital-efficient operations. The company had raised only $17.5 million in funding prior to this investment round, relying on its proven executive team and market-tested platform to deeply align with users’ needs. The platform allows brands and agencies to have easy access to timely, actionable information about consumers’ opinions of their products, services and brand promises.

“Brands and agencies are using Twitter data to inform all aspects of their strategy,” said Chris Moody, vice president of data strategy at Twitter. “We’re excited to see Crimson Hexagon raising funds to further enhance the products and services it delivers across the enterprise.”

Several new OEM and partnership relationships will also be key to continued momentum. For example, Crimson Hexagon recently announced:

  • An OEM partnership with Birst, a business intelligence and analytics provider that helps brands turn unstructured data sets into analytics initiatives;
  • The integration of anonymized Facebook topic data into its platform, which offers customers real-time access to the topics and interactions of Facebook’s more than 1.55 billion monthly active users; and
  • The expansion of its unique preferred analytics partnership with Tumblr to provide brands and agencies with greater insights into visual context on Tumblr.

Stephanie Newby, CEO of Crimson Hexagon, said, “We have completed a critical check list: a first-class experienced team, robust technology that is easy to use and a client base hungry for more: more data, more analytics, more insights. With this foundation, and with Sageview Capital as our partner in this next important step, Crimson Hexagon is ready to extend its market leadership position.”

Crimson Hexagon was advised by Shea & Company, LLC in connection with the financing.

Why Some Industries Must Work Harder For Positive Customer Reviews

Here’s the truth about customer sentiment. It’s biased. If I have to take my dog to the vet to spend $700 to figure out what’s wrong with her—do you think I will be in a happy high flying mood when I leave the vet? No probably not. Are you in a jolly mood when you go to buy car insurance? Are you someone who just counts down the days til your six month dental cleaning? Probably not.

These are the industries that need to work twice as hard to earn positive customer reviews. The reason for this is you’re dealing with bias.

Let’s look at some examples starting with the airline industry. American Airlines announced it will offer what it calls “no frills” tickets coming soon. Can you imagine what that looks like? I thought the generic airline experience was already no frills! It turns out out of all the customers complaining about poor service on Twitter, the airline industry takes the cake. In an analysis of tweets in 2014 and through this spring, 47% of posts about five large U.S. airlines were negative, while positive comments accounted for just 20 percent, according to a recent report by Crimson Hexagon, a social media analysis software firm in Boston.

Loudr Launches New Service to Help Artists Monetize Cover Songs

Beyonce in "Run" video trailer (ROCKNATION/YOUTUBE)

Artists now have another way to make money from their Ed Sheeran and Taylor Swift cover songs. Loudr has launched Loudr Licensing, an easy-to-use platform where artists and labels can get the requisite mechanical license needed to monetize a cover song on iTunes, Spotify and other channels. The service charges a flat $15 plus the cost of royalties.

"With the launch of this product we're rebranding as a rights company," Chris Crawford, Loudr co-founder and CEO tells Billboard. "Our vision is to produce accessible technology for people that need rights. We want the Loudr name to be associated with rights. You come to Loudr to get rights."

Dubset Thinks It Has Solved the Big Licensing Problem Behind DJ Mixes

Loudr Licensing arrives amidst two notable events. One is the closing of Limelight, a mechanical rights platform acquired by Google in 2011 that offers the same $15-flat fee rate. Limelight will stop providing mechanical licenses on March 31st and all licenses will be unavailable after June 30th. The other event is the recent rate increase by the Harry Fox Agency from 8.5 percent to 11.5 percent on April 20th.

San Francisco-based Loudr originally launched in 2009 as A Capella Records. The licensing service was targeted specifically at a capella groups and offered mechanical rights and a direct-to-fan storefront for cover songs. The company rebranded in 2013 and opened itself up to other genres.

Cheat Sheet for Copyright Reforms: Radio Royalties, Simplified Licensing

Much of Loudr Licensing's systems are unchanged from the original service, although the new service offers licenses for multiple products such as streams, downloads, CDs. The company can also work with artists that use other distribution services, and it can work with labels, too.

In addition, artists can use Loudr Licensing to distribute content on most any platform, such as iTunes, Bandcamp, SoundCloud, and any physical formats. But the service doesn't cover YouTube. For that an artist needs a synchronization license.

 

VENTURE CAPITAL SHOULD FUEL YOUR COMPANY, NOT YOUR EGO: 6 CRITICAL LESSONS FROM THE FALL OF FAB.COM

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If there is one case study in startup land that will haunt investors and entrepreneurs for years to come, it's Fab. The former design flash-sale site pivoted more times than Madonna reinvented herself—and today, the sorry story of Fab came to an anticlimactic resolution. After raising $325 million from everyone from Andreessen Horowitz to China's Tencent at a billion dollar valuation, the shell of Fab's formerly fab self (sorry) has finally sold to PCH for, reportedly, a meager $7 million in cash and $8 million in stock. How did this once Internet darling unravel so spectacularly? For entrepreneurs and investors looking to avoid the same mistakes as Fab, here are six lessons to extract from this e-commerce train wreck: Investors, Sometimes Failure Actually Means Failure Fab cofounder Jason Goldberg has a track record of running startups into the ground. Earlier in his career, he founded a search engine called Jobster—and managed to vaporize $48 million in funding before the company was sold for parts. "I was this poster child in Seattle of this guy who had burned through VC money, like a pariah," Goldberg told Fast Company in 2013. But Silicon Valley investors, who tend to view startup "failure" as a virtue, ignored the red flags—and Goldberg managed to talk investors into throwing a whopping $325 million at Fab... Read more at Fast Company

Mobile Commons Acquired By Upland Software (NASDAQ:UPLD)

Upland Software, Inc. (Nasdaq: UPLD), a leader in cloud-based Enterprise Work Management applications, today announced that it has agreed to acquire Mobile Commons, a cloud-based mobile messaging software provider. Mobile Commons’ enterprise-class application drives and manages digital engagement through sophisticated, two-way SMS programs and campaigns. Customers include healthcare, higher education, government, consumer product and nonprofit organizations seeking to maximize program outcomes and engagement levels. Upland has signed a definitive agreement to acquire Mobile Commons subject to customary closing conditions. The transaction, scheduled to close this week, is expected to increase Upland’s current annualized revenues to approximately $75 million. The Company will discuss further details of the acquisition and the continued strength of its business in Q3 and Q4 during its upcoming earnings call on December 16. With Mobile Commons, Upland is able to deliver the power of mobile messaging and digital engagement to its customers, both as a stand-alone cloud offering and by broadening the capabilities of its existing Enterprise Work Management products. In particular, Mobile Commons builds on Upland’s support for digital marketers by complementing the engagement and personalization strengths of its cloud-based Web Content Management (WCM) application, Clickability. Customers of Mobile Commons include National Cancer Institute, Bowling Green State University, New York Presbyterian Hospital, The Ad Council, New York City Metropolitan Transportation Authority, Viacom, Humane Society of the United States, Obama 2012 and Tumblr...... read more at MobileCommons.com

Wello Acquired By Weight Watchers (NYSE:WTW)

Wello, the startup that connects people with personal trainers to receive private fitness consultations through online video chat, is in talks to be acquired by Weight Watchers, sources tell TechCrunch. We’ve contacted Wello for details on the deal, but at the moment, the company has declined to comment. This post will be updated with any additional information, such as financial terms, we receive. Wello, which launched in mid-2012, has raised some $1 million in seed funding from a range of well-known investors including Rock Health, Kleiner Perkins, Mohr Davidow, Aberdare Ventures, Mayo Ventures, Morado Ventures, S-Cubed Capital, PhilQuo Ventures, and other angels. Since its launch two years ago, Wello has extended its product lineup from one-on-one video chat to include group training sessions and gym-like monthly membership subscriptions...... read more at TechCrunch.com