Israeli user-generated content marketing platform Yotpo has raised $51 million in its latest round of funding.
This brings the total amount raised by the startup to $101 million with $22 million raised just earlier this year.
The round was led by Claltech and drew participation from existing investors Blumberg Capital, Rhodium, 2B Angels, Bessemer Venture Partners, Marker, and Vintage Partners. Vertex Ventures, a new investor, also participated in this round.
In what led to the latest funding round, Tomer Tagrin, CEO told Israeli business media publication Globe: “We weren’t looking to raise money at this particular time. Our original plan was not to raise money until the beginning of 2018 but we received three proposals from bodies that hadn’t yet invested in the company. At that point we turned to our existing investors and they all said that they would be happy to invest more.”
Yotpo is an acronym which means ‘Your Opinion – The Public Opinion‘. Yotpo lets brands collect user-generated content in the form of reviews, Q&As, photos, and videos which can be used in their marketing activities.
The startup uses artificial intelligence and data to find the perfect time and way for websites to ask customers for post-purchase reviews. This greatly improves response rate.
The platform further uses emotional AI to analyze all content that is submitted to classify them more precisely.
Explaining how this works, CEO Tagrin said: “Yotpo uses natural language processing to ensure that reviews are classified accurately by both star ratings and textual analysis,”.
“That means smarter marketing, fewer missed opportunities, and much better on-site optimisation. This level of understanding impacts reviews automatically shared on-site and on social media”.
The platform is currently being used by over 200,000 websites.
Yotpo plans to use the latest funding to build out an enterprise version of its app, open a second U.S. office in Salt Lake City, UT and also increase the number of employees working for the company from 270 to 420.