Cape Town-based HAVAIC has led the first round of funding for delvv.io, a crowdsourcing startup that provides advertising agencies and brands with feedback on their marketing campaigns. In tandem with UK-based investor Kevin Gaskell, the boutique investment and advisory firm is backing delvv.io with R6.5 million or approximately $460,000.
“We identify scalable early-stage businesses like delvv.io that have international potential – something that isn’t perceptible just by scrutinising a balance sheet,” says Ian Lessem, CEO of HAVAIC. “Enthusiastic management, consistent delivery, servicing globally-relevant markets, as well as a culture that attracts the best talent, are the hallmarks of a startup that will result in funding becoming a smart investment.”
The capital will be used to help the year-old company develop its business in South Africa and abroad. In its first year of operation, the company signed 25 brand clients in South Africa, North American and Asia, growing its revenues by 150% and increasing its headcount to seven. The company plans to continue this growth trajectory by selling its current and an expanded product suite to more clients, especially multinational FMCG, automotive and tech companies, with a goal of delivering over 50% in compound annual growth within 5 years of opening its doors.
delvv.io’s services allow clients to get early-stage input on their creative concepts, marketing storyboards, app and websites from an extensive network of independent experts, thereby reducing the costs of testing and launching new campaigns in new markets significantly and helping improve campaign performance.
The deal fits well with HAVAIC’s venture capital investment thesis which centers around backing South Africa’s talent in the software, technology, marketing and PR sectors which manifests domestic and international expansion potential. HAVAIC looks to deliver its investors IRRs of between 30% and 40%.