The cornerstone capital raise of $5m has significantly strengthened Adveritas’ balance sheet, allowing it to pursue its international expansion strategy.

Ad fraud prevention company, Adveritas (ASX:AV1), is all cashed up and ready to accelerate its growth strategy after successfully raising $5m.

The $5m was raised through a combination of options exercise worth $3.6m, and a placement of $1.4m that includes a cornerstone investor, Record Point.

Alongside Record Point, which is a leading independent corporate advisory firm, placements were also made to other professional high net worth sophisticated investors.

The fresh funds have significantly strengthened Adveritas’ capital position, bolstering its existing pro forma cash balance of $8.4 million, following a record last quarter.

“Together with the proceeds from the exercise of the company’s AV1O listed options, the total of $5 million raised has significantly bolstered our balance sheet,” said Adveritas co-founder and CEO, Mat Ratty.

“These funds will directly grow sales, allowing us to further expand our sales pipeline across key verticals, and deliver further enterprise contracts with major businesses.”


Significant growth pipeline

Adveritas’ strengthened balance sheet will support the acceleration of its significant growth pipeline.

The company has just come off a record last quarter – with revenues up 57% qoq underpinned by a marquee deal that saw TrafficGuard selected as the only certified PPC (pay per click) ad verification vendor on the Google Cloud platform.

Acceptance into the Google Marketplace has been a key priority for Adveritas over the last nine months, as it looks to rapidly scale TrafficGuard’s services by taking advantage of Google’s extensive reach.

Other major contracts signed for the Trafficguard platform during the quarter include Indonesian unicorn ecommerce platform JD.ID; CAR24, a platform for pre-owned autos, and Singtel, Asia’s leading telco company.

AV1 also has a growing pipeline of companies on trial in the sports betting and gaming, retail, and finance verticals across Asia, Europe, India, and Australia.

The fresh funds received today will be used to broaden its digital marketing footprint, along with supporting the roll-out of Adveritas on the Google Cloud Marketplace.

The company also plans to hire additional sales representatives across Asia and Europe to support the rapid growth in freemium subscribers, which is usually a strong leading indicator of future revenue growth.

“I’m pleased to welcome our new shareholders to the company as they join our register at an exciting time, when we are significantly ramping up our annualised revenue through enterprise contract wins with market leaders across gaming, ecommerce and telecommunications,” Ratty said.

Ratty says that Trafficguard is increasingly being recognised for the significant benefits its multi-channel solution brings, which is solving a massive global ad-fraud problem.

Digital advertisers’ total loss to fraud is indeed becoming a major problem for the industry, and is forecast to hit $100 billion by 2023.

Using TrafficGuard, marketers, agencies and ad networks can both detect and prevent invalid traffic in real time in order to maximise the return on their advertising spend.

This article was developed in collaboration with Adveritas, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.