Swiss marketing AI startup Nexoya secures $5 million in Series A financing to expand into new markets
Nexoya Ltd. has received $5 million in Series A financing. BlackSheep MadTech Fund, managed by Eureka! Venture SGR, specializes in investments in innovative marketing and advertising technology and is a leading European investor in the industry.
Nexoya has been automating and optimizing advertising budgets across channels for digital marketing since 2018. Nexoya integrates digital advertising channels and connects them with their AI-based solution.
The digital advertising market is growing and becoming more dynamic. ChatGPT from Open AI currently reinforces the disruptive dynamics that AI technologies have triggered in the digital advertising industry. In this situation, Nexoya marketers are able to keep their advertising spending under control across all channels and benefit from the optimal performance of their campaigns.
In 2022, Nexoya tripled its revenue and enjoyed stable growth of 12.5 percent month-on-month. The start-up currently employs a total of 24 people at its offices in Zurich and Berlin. The fresh capital will secure further growth in Switzerland and Germany and enable Nexoya to expand into new markets such as Italy and the UK. The team will grow to 30 people by the end of 2023.
Investor BlackSheep MadTech Fund is the only investment fund in Europe that focuses its commitment exclusively on marketing and advertising technology startups.
Marco Caradonna, co-founder and Managing Partner, BlackSheep MadTech Fund: “Nexoya is the only solution in the market that combines cutting-edge AI-based predictions and algorithms with fully automated budget allocation and optimization. It is a ‘dream come true’ for marketers who can now get much more out of their marketing budget, with one click. Combined with the world-class team around Marco Hochstrasser and Manuel Dietrich, we foresee enormous potential with Nexoya.”
Marco Hochstrasser, co-founder and CEO, Nexoya: “Overall, we see a very dynamic digital advertising market with incredibly fast developments. Especially with the success of large language models like ChatGPT, with the acquisition of Xandr by Microsoft, or with new advertising channels like Amazon Ads, Apple Ads, and Walmart Ads, the digital media world has changed strongly. Automated and data-driven portfolio management for digital marketing will therefore become significantly more important. As a cross-channel budget optimizer, we are right in the middle of this with Nexoya. We ensure that our customers can keep up with this dynamic and flexibly deploy advertising budgets where the potential is greatest for them.”
Nexoya combines all campaigns with the same target across all channels into one portfolio and then optimizes the budget using predictive analytics across these channels. Automatically and with one click, the budget can be shifted across 40 digital advertising channels.
Nexoya does this for a wide range of marketing departments, such as those of Generali, Yuh, Magix, Sunrise, or Kardex. Currently, Nexoya is already significantly boosting performance KPI. Thanks to the planned integration with six other channels for digital marketing, the platform’s AI will have additional data to work with. This will make campaigns even more effective.
Mike Fuhrmann, Chief Marketing Officer, Generali Switzerland: “We are astonished by the impact Nexoya has had on our Performance Marketing results. Their data-driven approach has significantly increased our ROI. We see great potential for their solution in various markets and industries worldwide. With the recent investment round, I am excited to see Nexoya expand its reach and help even more businesses to reach new heights.”
The solution’s AI technology decides in real time how to allocate budget in the future in a way that makes the most of marketing budgets. In short, Nexoya individually determines the most promising use of advertising budgets in each case. In addition to common web analytics tools, paid ads platforms and social media channels, Nexoya takes into account systems from the CRM, ERP or e-commerce sectors such as Salesforce or Pipedrive, email marketing tools such as Mailchimp, the SAP Marketing Cloud and GoToWebinar as well as the mobile app stores for Apple and Android.
Additionally, Nexoya implements weather data and current exchange rates to provide even more accurate predictions of campaign performance. The Nexoya team is continuously adding new channels to its integrations to always provide its users with the best possible optimization of their budgets. Most recently, Nexoya integrated Pinterest, Taboola, Google Analytics 4 and Outbrain.
