Appboy, a US-based app marketing technology platform for mobile relationship management (MRM), has raised $7.6m series A round of financing led by venture capital firm Icon Venture Partners, with participation from IDG Ventures, a network of venture capital funds backed by IT media company International Data Group, and Mike Lazerow, chief executive officer of Buddy Media; existing investors Blumberg Capital, T5 Capital, Bullpen Capital and Accelerator Ventures also participated.
The funds will be used to build Appboy’s sales and marketing team, and to expand product offerings.
Tom Peterson, partner at Icon Venture Partners, said: “With additional funds, Appboy will continue defining the future of mobile and extend its lead in MRM through 2014.”
Mike Lazerow of Buddy Media said: “Mobile is experiencing the same momentum and going through the same pain points as social media did a few years ago. By creating a unified dashboard for managing mobile relationships, Appboy offers brands a turnkey solution to engage their audience and build a strong community.”
Appboy states that the mobile ecosystem is expected to expand to over 1 million apps in three years; however, the average app business struggles with high user acquisition costs and low retention rates, such that 60% are unable to break even, so “app marketers must radically shift their approach from buying ads and driving installs to managing their mobile audience.”