Sourcepoint, the company probably best known for its ad blocker blocker technology, has raised a $16 million Series B funding round.
The company describes itself as a "content compensation platform" that helps publishers claw back money lost to ad blockers by providing users with other ways to compensate publishers — such as subscriptions or one-off payments — rather than seeing ads.
In a press release, Sourcepoint's CEO Ben Barokas says this year the company wants to help move the publishing industry from simply being aware of different compensation models to actually encouraging more consumers to pay.
Sourcepoint will use the investment to develop a product it is calling the "Spotify for digital content" — a platform where users make a one-off payment to consume content across a range of publishers.
The company plans to expand on its existing product offering for publishers, increasing the amount of tools they can use to communicate with users to encourage them to make a transaction — in the form of payment, agreeing to view advertising, or offering over data like an email address — in order to view content.
Sourcepoint's clients include AOL, Dennis Publishing, and Gruner & Jahr.
Barokas said:
"We're entering an interesting period for the digital media and advertising industry — with the European GDPR (General Data Protection Regulations) due to come into force in 2018, data compliance, open communications, and transparency are top of mind for publishers. It will soon be required to have conversations with audiences about how and why their data is used; not only will that clarify how an individual's data is used, it also provides a key moment for publishers to underline the value exchange of how content is traditionally funded and engage with audiences on choices around content compensation."
The $16 million Series B round was led by London-based technology investment company Northzone. It also included participation from existing investors Accel Partners, Greycroft Partners, Spark Capital, and Foundry Group. It brings Sourcepoint's total investment to date up to $26 million.
Northzone general partner, Pär-Jörgen Pärson, will join Sourcepoint's board as part of the transaction. He also sits on Spotify's board.
Pärson said: "We are delighted to support Sourcepoint as it continues to innovate within the online publishing industry, providing solutions to revolutionise an individual's experience of online content consumption. We are particularly excited about their work in creating subscription offerings for the digital content environment as it is no longer assumed that audiences must pay for content with their eyeballs by viewing ads."
