Socialeads Inc., a Milwaukee startup that uses machine learning and artificial intelligence to support insurance and financial services, has closed on $1.75 million in new investment capital to grow its sales and marketing, both domestic and international, the company announced.
Socialeads' technology allows financial advisers to understand the size and value of an individual’s social media network, thus more effectively positioning products based on what is learned through the platform.
The new investment capital came from both new and existing investors. Existing investors were Northwestern Mutual, through its Cream City Venture Capital fund, and Neenah-based Winnebago Seed Fund. New investors were Oklahoma City-based Cameron Ventures, Madison-based Rock River Capital, and Silicon Valley’s Plug and Play Ventures.
Socialeads is a part of Plug and Play Ventures insurance tech program and has successfully launched pilots with multiple large insurance companies in the U.S. and abroad, company officials said. Larry Hitchcock, co-founder and CEO of Socialeads, said the company has launched a pilot in South Africa and will launch a pilot in South America and Japan in the near future.
Socialeads was started by Hitchcock and Matthew Salzer in 2018 and has grown to a team of seven, including former professionals at American Express, Bird Rides Inc., LinkedIn and eBay.
In January 2018, Socialeads won Northwestern Mutual's first Reverse Pitch competition, for which the company received $75,000 in seed money and workspace in Northwestern Mutual’s Cream City Labs, which the company still occupies.
Socialeads piloted its technology with Northwestern Mutual for six months and is now a certified vendor partner for the life insurance and financial services management company, Hitchcock said. The company has also signed on St. Louis Park, Minnesota-based TruChoice Financial as an enterprise customer.
“It has been great to have a front row seat for the creation and growth of Socialeads from Reverse Pitch winner to scalable business," said Craig Schedler, managing director of Northwestern Mutual Future Ventures, the venture capital arm of Northwestern Mutual. "What Larry and team have built solves a real problem for financial advisers as they look to meet clients and prospects where they are in an increasingly digital world. I really look forward to the next stage of the company’s growth."
