Joyus receives a new round of $11.5m funding and Reveals key data proving the success of Online Video Commerce
Joyus receives a new round of $11.5m funding and Reveals key data proving the success of Online Video Commerce May 2013
May 6, 2013 - San Francisco – Joyus, the web’s first premium video shopping platform, announces today a new round of $11.5m funding bringing the total capital raised to $19m. This new round was led by Interwest Partners and Time Warner Investments. Existing investors, Accel Partners and Harrison Metal also participated in the round.
Along with the announcement, Joyus reveals a captivating new study which proves that fashion, beauty and lifestyle brands can directly monetize video through direct response product sales. “In an era when companies use video to tell stories, we use it to sell stories,” states Sukhinder Singh Cassidy, CEO and Founder.
Joyus starts where traditional e-commerce stops. With a platform built for Direct Response Videos, Joyus’ compelling video content creates direct sales of goods and service, which have proven to convert at 5.15 times the rate of visitors who only browse product listings on the site. Joyus video viewers are buying 4.9 times more than those who don’t watch the product videos. Every time someone watches a video, Joyus can measure the resulting sales revenue, creating the first ever metrics for return on investment (ROI) using online video to drive product sales.
Revenue Per View is the key metric in measuring the ROI of each direct response video by calculating gross sales revenue on every video view. On Joyus.com, across 6 categories of products - fashion, beauty, home, food, health and fitness, and tech - the average revenue per video (RPV) view ranges from $0.47 - $0.93. By way of example, every thousand views of video on Joyus produces between $470 and $930 in direct sales revenue of the associated products in the video.
Up until now, online video has largely been measured only by engagement statistics and monetized indirectly using brand advertising. Joyus’ business model provides the first platform for brands to directly sell products through video profitably and easily online.
“Joyus has shown that online video, when done right, can be a massive entertainment and commercial opportunity. Users and brands love engaging through Joyus videos. As broadband and mobile proliferate, Joyus will make shopping even more spontaneous and fun,” states Keval Desai of Interwest Partners.
With Joyus’ growing success, the company is also pleased to announce the addition of Ido Leffler, co-founder of Yes To, one of the world’s top natural beauty brands, to the company’s board of directors. Leffler remarks, “Joyus is one of the best launch platforms, especially for indie brands, as it conveys the spirit of a product like no other channel out there.”
One of Joyus’ partners, People StyleWatch, already knows the potential as a major revenue stream. “For us, Joyus is the natural evolution of e-commerce. The video platform brings products to life, and we’ve seen our users respond positively to the experience, ultimately helping to drive to purchase,” said Joseph LaFalce, Director, Business Development, Time Inc.’s Style & Entertainment Group. “Partnering with Joyus has been a great way to extend our brand and editorial voice with our audience in an exciting and engaging way.”
With hundreds of videos across millions of views, Joyus has unlocked the best practices for gaining measurable revenue results from every video. More than 500 brands already on Joyus enjoy direct ROI on their products featured in videos on the site. The top performing sub categories on Joyus include: Hair, Pants & Leggings, Beauty Tools & Accessories, Bracelets and Personal Organization.
Joyus is the web’s first video shopping experience for consumers, allowing users to watch, shop and share products they love across Fashion, Beauty, Health & Fitness and Lifestyle. Founded in 2011, the company brings together an experienced management team including executives from Google, Ebay, Efficient Frontier, ABC, HBO, Sephora, and Fred Segal. The company was recently named amongst the “Hot 100 Retailers of 2013” by Internet Retailer (Dec 2012), Brand Innovators’ “Top 25 E-Commerce Companies to Watch” (2013) and AO Networks “Top Private Companies to Watch” (2013).
ABOUT INTERWEST PARTNERS
InterWest Partners is a venture capital firm focused on early stage IT and Healthcare investments. For more than 30 years InterWest Partners has partnered with entrepreneurs to build winning technology and life sciences companies. With more than 200 years of combined operating and investing experience, our team has raised $2.8B, completed more than 70 IPOs, and participated in nearly 60 upside acquisitions. We are currently investing InterWest X, a $650M fund, and managing more than 100 active investments.
ABOUT TIME WARNER INC.
Time Warner Inc., a global leader in media and entertainment with businesses in television networks, film and TV entertainment and publishing, uses its industry-leading operating scale and brands to create, package and deliver high-quality content worldwide through multiple distribution outlets.
ABOUT IDO LEFFLER
Ido Leffler is Co-Founder and “Chief Carrot Lover” of San Francisco-based Yes To Inc. (makers of Yes To Carrots, Yes To Cucumbers, Yes To Tomatoes, and Yes To Blueberries). Since 2006, Leffler and his team have built Yes To™ into one of the world’s top natural beauty brands, with distribution in over 28,000 stores in 25 countries (including retailers such as Target, Wal-Mart, Walgreens, Whole Foods Market, and Sephora Europe). Yes To is now the #2 natural brand in the country – an accomplishment Leffler attributes to how the company treats its customers, team, and the world around it.