Terms of the deal were not disclosed, but the acquisition of the AI advertising management startup business comes after its parent company acquired $110 million in funding.
The goal of the Downstream startup company is to utilize AI to crunch the analytics numbers most relevant to sellers on Amazon and use them to create ad spending recommendations — and so far, it’s working out.
The Success of the AI Startup Company
The AI-powered advertising analytics company has raised $5 million to date from investors like Haystack, Liquid2 Ventures, Techstars, Unlock Venture Partners, Revel Partners, DNX, Founders’ Co-op, Fabric Media, and 9Mile Labs. The AI startup business also has a number of other successes under its belt: it’s got over 5,000 customers and is experiencing year-over-year startup business revenue of over 200%.
“Since March of last year we’ve been living in an e-commerce-first world, and that has made Amazon the most important channel for most brands,” Connor Folley, CEO of the AI-powered startup business, told GeekWire. “That has meant that Downstream has become mission critical to managing their presence on Amazon, so we’ve experienced significant growth.”
Those numbers proved impressive to the new owner of the startup business. Jungle Scout went through a rigorous process to search for its next company acquisition, Jungle Scout CEO Greg Mercer said in a statement, and Downstream came out on top.
“Jungle Scout sought out the absolute best AI-powered advertising technology to add to our platform,” he said. “We evaluated dozens of tools, and Downstream emerged as a clear leader for its capabilities in managing and optimizing Amazon advertising programs.”
The Future of the Jungle Scout Business
Jungle Scout is looking to be a startup company that can serve the needs of all its sellers, not just the ones on Amazon. Because while Downstream is the first startup business that the company has acquired, it won’t be the last. And that’s where the $110 million investment comes in.
“Long term, the mission is to be a very much holistic product end solution for these sellers. So, wherever our sellers and brands are selling their products, we plan, long term, on helping them there,” Mercer told Ad Exchanger.
The company and its newest AI startup business acquisition are in a good place for growth. The global data and business analytics market was worth $168.8 billion in 2018 and is expected to grow to a business valuation of $274.3 billion by 2022. That’s a compound growth rate of over 13%. It’s also a sign that the company is in the right space.
About the Author
Elijah Labby is a graduate of the National Journalism Center. He has previously written for Broadband Breakfast, a technology and internet policy website.