The Brazil-dedicated VC fund Redpoint e.ventures has selected 55social, a provider of tools and solutions for social media campaigns, for investment.
Founded in 2011, 55social helps its clients to maximize their social media marketing results. It provides users with a set of tools to manage and measure campaigns, thus making adjustments and rendering their efforts more efficient and effective. The company has already been backed by IG Expansion and, interestingly, Redpoint Ventures.
With the Redpoint e.ventures investment, the 55social team hopes to boost its growth and develop new and innovative solutions tailored to the Brazilian market. Emílio Maciel, CEO of 55social, elaborated:
We are pioneers in this still-incipient market in Brazil, and having the expertise of Redpoint e.ventures will be crucial in enhancing our growth strategy and maintaining the quality standards of the solutions that we offer our over 150 clients.
Redpoint e.ventures’ decision to invest was likely inspired by Brazil’s growing online advertising market, which moves roughly US$4 billion annually. Considering that over 90% of Brazil’s 85 million internet users access social networks regularly, social media marketing is a highly-effective avenue for reaching consumers.
Anderson Thees, Redpoint e.ventures Managing Director with whom we spoke in August, expressed confidence in the investment:
The solutions developed by 55social have an incredible amount of value, and the results obtained by the company in the short time since its launch are very good. The growth index of the social-network-oriented communications market is increasingly significant in the country. These factors, combined with, most importantly, a solid team with innovative ideas, were determining elements in our investment decision. We believe that the expertise, network and local resources offered by Redpoint e.ventures will render this partnership a success.
This is Redpoint e.ventures’ second investment since it announced the closing of US$130 million in funds to be dedicated to Brazil in July. In September, the group made its first investment in online insurance broker Minuto Seguros. Will it squeeze in another deal or two before 2012 comes to an end? We’ll have to wait and see.