PebblePost, a startup that uses online data to target consumers with printed mail, has raised $47 million in a combination of equity and debt.
That includes the $15 million, RRE Ventures-led Series B that the company announced in February. The equity portion of the funding has been expanded to $20 million, with another $27 million coming from a loan facility from Horizon Technology Finance, plus a credit facility from Silicon Valley Bank.
Marita Scarfi, PebblePost’s CFO and general manager of west coast operations, told me that the debt financing will be serve as “working capital” for day-to-day operations, while the equity funding is used to expand the company into new industries and geographies.
“It’s additional capital for the existing plan,” Scarfi said. “This allows us to be much more flexible working with our customers as we continue to grow the business and the platform … before going out for another growth round.”
PebblePost describes its technology as “programmatic direct mail.” In some ways, it’s similar to the emails and ads that might nudge you to make a purchase after visiting a retailer’s website. But for PebblePost, these nudges take the form of printed, personalized postcards and catalogs — CEO Lewis Gersh has said this combination of new and old approaches allows marketers to reach consumers when they’re more receptive to the company’s message.
PebblePost has now raised $28 million in equity funding, plus the $27 million in debt — an amount that Scarfi said “really puts us in a market leadership position.”
“I feel that it gives us a strong leg up to really blow out the space and stay in that lead position,” she added.