Capitol Broadcasting Invests in Atlanta Mobile App Firm
Scoutmob, an Atlanta-based applications developer focused on delivering location-based deals in real time, is poised for more growth now that it has raised $3.25 million in new financing.
Capitol Broadcasting, which has its own subsidiary focused on the mobile space (StepLeader, formerly known as News Over Wireless), is one of the investors.
Founded in 2010, Scoutmob has developed technology that “acts as a local compass” for deals, content and more. (Watch a video here.)
Other backers include AOL Ventures, Cox Enterprises, private investor Ben Lerer and New Atlantic Ventures.
Scoutmob also announced Thursday an agreement with First Data Corporation for financial and other services between consumers and merchants.
“Our vision has always been to combine a strong brand with new methods to connect locals with their cities. This announcement confirms both media and transaction leaders recognize the power of our disruptive model,” said Scoutmob co-founder and CEO Dave Payne. “With a base of well over a million users, we will leverage these partnerships to continue pushing our mission forward.”
Jimmy Goodmon, vice president of CBC’s New Media group, said Capitol chose to invest in Scoutmob for two reasons – the technology and the firm’s leadership.
“I spent a good deal of time with David and his team understanding the nuances of this business and, of course, the opportunities and the obstacles both before the company’s previous round 12 months ago and the months leading up to this funding event,” Goodmon said in an interview. “Most importantly I very much like David Payne and his team. I really like the product. It provides unique value to consumers and retailers and clients both and it does so in multiple ways.
“In my opinion, technology is not the barrier to entry in this space as it can be in other industries,” he added. “Rather, the real advantage a company can achieve is through a unique offering and feel to both retailers and consumers and through unparalleled managerial execution.”
Scoutmob has already offered pre-purchased daily deals as well as free, spontaneous offers.
The new funding will be used for further product development.
“Scoutmob has built an awesome brand in a great category, and as a result has seen spectacular consumer engagement. I think everyone knows there’s massive opportunity at the intersection of content and commerce and Scoutmob is perfectly positioned to do this as well as anyone on the local level,” said Lerer, a co-founder and CEO of Thrillist.com.
Thanks to WRAL Tech Wire for this capcom story & graphic.