Scottish startup Good-Loop, which turns ad revenue into donations to good causes, has raised £4.5 million as part of a Series A funding round.

Led by US investment fund Quaestus Capital Management (QCM), the cash injection brings the total investment in Good-Loop to £6 million since the company launched in 2016.

The funds will be used to accelerate the company’s product roadmap, which includes the development of new solutions aimed at reducing the carbon footprint of digital advertising.

Good-Loop revealed it also plans to expand internationally. At present, the firm has offices in Edinburgh and London, but plans to open new sites in New York and Chicago to serve a burgeoning US market.

The funding round saw additional backing from Scottish Enterprise, SIS Ventures and European adtech fund, First Party Capital.

Commenting on the investment, Good-Loop CEO & co-founder Amy Williams said: “Backing from industry experts like QCM and FirstPartyCapital, social impact investors and, indeed, the general public, will help to supercharge our growth whilst keeping us true to our values at every step along the way.”

Good-Loop’s ad formats encourage people to watch an entire ad online by allowing them to ‘unlock’ a free charitable donation at the end of each spot.

This strategy allows advertisers to receive more meaningful brand engagement, while appealing to consumers’ goodwill by providing a cost-free means of philanthropy.

According to the firm, this results in an average ad recall 4.5x higher than the industry standard. Designated charities receive 50% of ad revenue.

Current clients include Unilever, PepsiCo, Nestlé, Levi’s, Adidas, NBC Universal and Nike.

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Williams said: “At the heart of our industry is an inherent value exchange between advertiser and consumer, and I’m on a mission to harness that value as a significant force for good.

“Through our respectful, positive ad platform, brands can treat people online as partners – rather than targets – united by a desire to have a meaningful social impact.”

Austin Davis, CEO at QCM, commented: “Good-Loop elevates advertising and conscious-minded business to an entirely new level and will become the industry Fairtrade Stamp.

“Good-Loop proves doing good is truly good for business – it is not a trade-off. I’m genuinely honoured to have led their Series A, and to be working with such an exceptional company and team.”

Rob Halliday, Senior Investment Manager, SIS Ventures, added: “Since starting up, progress has been impressive and Good-Loop is now remarkably well positioned for global growth and impact creation. It has been a real privilege sharing the journey with a first-class team and we’re excited to be part of the next chapter.”

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