Impact raises $150 million, aims for early 2022 public offering.

Qatar Investment Authority and Providence Public lead most recent round.


Summary:

  • Impact announces $150 million in funding from Qatar Investment Authority and Providence Public.

  • In a March 7th interview with Martech Record, Impact CEO Dave Yovanno said that Tuesday’s funding and implied valuation put the company within range of an IPO early next year and values them at $1.5 billion.

  • The valuation implies an addressable market of $25 billion, Yovanno said in the Martech Record interview.

Impact announced on Tuesday $150 million in funding from Qatar Investment Authority and Providence Public. According to Impact, the money brings the partnership management platform’s valuation to $1.5 billion, putting it well within range of a potential IPO in the near future — as Martech Record speculated in May.


This round is twice Impact's last raise and significantly more than the affiliate industry has seen in the past. Partnerize's $50 million raise in 2020 and Impact's $75 million in 2019 had been considered milestones. Both drove a wave of acquisition.

Impact now supports partnerships for more than 1,600 brands and has an annual recurring revenue above $100 million. It’s addressable market is estimated to be $25 billion, said CEO David A. Yovanno.

The latest funding will be used to push more innovation in automating partnerships, increase channel partnerships and scale the go-to-market efforts for brands, agencies and publishers. “We’re investing in the entire ecosystem -- our whole goal here is to grow the entire pie,” said Yovanno in a two part interview with Martech Record on July 7 (watch part one and part two here on Martech Record’s YouTube channel).

The latest funds are “an important stepping stone on the path to an IPO,” which could come as early as next year, Yovanno said in the interview. “This gives management a lot of confidence to continue to execute on further accelerating our top line growth.”

The announcement comes on the heels of Impact’s acquisitions of Affluent, Trackonomics, and Activate in the past 12 months. In March, Impact also became a Certified App Partner for influencer and affiliate marketing for Shopify Plus. Existing investors in Impact include PSG and Silversmith Capital Partners.

Industry players have wondered if Impact’s organic growth, acquisitions and increased funding will decrease transparency in pricing rather than remove friction between supply and demand side. Addressing this concern Yovanno reiterated Impact's plans to continue to invest in the overall ecosystem We aspire to provide technology solutions, automation and market network effects for all actors in this ecosystem. Our strategy is not to take a larger piece of pie, but rather to make a bigger pie for everyone to enjoy. Key to this vision is more transparency, more interoperability, more partnerships, not less.”

While partnerships have long existed in various forms, Yovanno explained that distrust in more traditional advertising strategies pushed brands to look for other ways to reach consumers through meaningful partnerships, increasing Impact’s addressable market. “Modern consumers want what’s real,” Yovanno told Martech Record. “This whole modern movement in how people are reacting to decades of traditional advertising is what is really driving the move toward partnerships. What started as an undercurrent maybe four to five years ago has now become a tidal wave for how brands are connecting with the modern consumer.”

To see Martech Record’s analysis of Impact’s addressable market, click here.

When asked how Impact plans to manage its growing roster of brands and any potential conflicts that might exist with other platforms or networks, Yovannno expressed solidarity with the industry saying “Trackonomics and Affluent continue to operate as independent companies and the data that is unique to agencies and networks for example remains unique to them. There won’t be a loss in transparency since the data that brands, agencies and publishers manage will still be accessible to them. They own that data and have full control over it. Impact is not a walled garden, nor do we have interest in becoming one.”

What is clear is that investors are betting that there is huge potential for growth in the partnership market.

To learn more about where growth will come from register here to join Martech Record’s August 12th Webinar, featuring investors who focus on the media and partnership space.


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