Vidcoin is an advertising technology startup focused on video ads for smartphones. The French startup makes watching video ads less painful by providing an SDK that will buffer videos before playing them so that they will instantly play.
“Mobile video continues to be a challenge for one simple reason: mobile connectivity can be spotty so the type of streaming videos [companies like Teads] sell is tough to deliver on mobile,” co-founder and COO Grant Gudgel told me. “So we built a technology and a native mobile video ad format that get around the connectivity issues by detecting the user’s connection speed and pre-loading targeted video ads directly inside of apps on the user’s mobile device.”
Vidcoin works directly with app developers to integrate its ad format. In particular, the company targets freemium developers, such as game developers. In the ideal case, if you choose to play a Vidcoin ad, you can get more coins or unlock levels.
“The user opts in to watching the ad in exchange for access to desired in-app content,” Gudgel said. “Today we are primarily integrated in gaming apps but are also getting interest from messaging and other freemium apps.”
The startup recently raised $1.3 million (€1 million) from Virtual Network, Kima Ventures and business angels. It has a current run rate of $2 million, and reaches 50 million people every month. This new funding round will let the company open an office in New York.
Finally, the company works with Teads, TechCrunch’s owner AOL, Unruly Media and more. These advertising companies provide an inventory of video ads so that Vidcoin can focus on its technology.
Vidcoin is an interesting technology partner for these advertising giants. If ad delivery become much more effective when Teads or AOL use Vidcoin, the small startup could become a potential acquisition target.