We’re thrilled to publicly announce Marpipe, the world’s first platform for end-to-end multivariate creative testing -- and the newest addition to the Laconia portfolio.
In May of 2019, we had the pleasure of meeting Marpipe’s founder and CEO, Dan Pantelo, through our amazing former intern, Paola Delgado. When she introduced the company as an adtech firm, we were a bit hesitant to get excited right off the bat. Although we have seen great success in the past with our fund investment in PromoteIQ (acq. Microsoft) and legacy investments FreeWheel (acq. Comcast) and TripleLift, we tend to approach this sector with caution given its highly saturated nature and somewhat limited liquidity options.
When we first met Dan, he was building a fast-growing digital marketing agency that was delivering exceptional results and insights thanks to the proprietary technology that his team had built. In working with both brands and agencies, the Marpipe team had discovered that they could use automated multivariate testing and machine learning to discover, create, and analyze the best-performing creative content for brands, products, and services. By generating thousands of creative files that isolate and measure visual variables, marketers can pinpoint with data-driven certainty exactly what visual stimuli audiences react best to, allowing them to rapidly narrow in on audience/creative fit that can scale. For the first time, marketers can understand not only which creative outperforms but why.
Though we were impressed with the underlying technology, unique value proposition, and early traction, we went back and forth on whether this functionality was a “nice to have” feature or an essential piece of the overall creative workflow. We also had hesitations about the managed service business model. Dan’s collaborative attitude throughout these conversations became readily apparent. He never became defensive toward our questions, opinions or suggestions, and he continually impressed us with his rigor and thoughtfulness.
As is the case more often than not, we ultimately passed on the investment. Side note to any founders reading this: a “No” from a VC isn’t necessarily set in stone. In some cases, an entrepreneur’s ability to receive and incorporate constructive feedback, along with demonstrated progress, can convert that “No” into a “Yes”. In fact, this has been the case with our last three investments, which we ended up proudly coming back to lead or co-lead alongside strong syndication partners.
After we initially passed, Dan continued to reach out for our feedback and kept us updated on the firm's progress. In the following months, he made meaningful progress in evolving the company’s business model, refining the product roadmap, and establishing strategic partnerships that enable scalable growth. His continued execution combined with his communication style and collaborative nature only increased our confidence in his vision and ability. After a particularly exciting catch-up meeting in November, we issued our term sheet in partnership with TIA Ventures, and in January 2020, we closed the deal.
Fast forward to today -- and the real highlight of this post -- Marpipe has now publicly launched the first self-serve platform enabling multivariate testing for ad creative. With market-leading companies like Segment, Mars, and Tubi already using Marpipe, users across the entire platform (including 700+ lucky firms with beta access) discover new ads that perform over 200% better than their average.
With the launch of the public beta and freemium plan, now anyone growing a brand can sign up for Marpipe and get started in minutes. We couldn’t be more excited about Marpipe’s momentum. Their platform is a game-changer for the creative marketing industry.
To learn about how Marpipe is increasing marketing efficiency with their data-driven approach and get started, check out their latest release and their launch on Product Hunt today!