Action sports-focused social media property Loop’d Network has picked up $800,000 in a third round of funding. New investor Tech Coast Angels led the round, with input from company’s previous private investors. Loop’d will use the funding to help scale out its new e-commerce platform.
“Action sports brands are struggling; their advertising budgets are smaller, and so the e-commerce option works great for them,” CEO Scott Tilton said. “They’re more apt to give us a large commission on sales than just spend for an ad campaign.” Tilton said Loop’d’s e-commerce platform had generated $4 million in revenue during its six-month beta — a factor that enticed investors that had been reluctant to put up money a few months ago.
“We tried to raise money when everything started melting down because we were still burning capital, but of course, people were reluctant,” he said. “So we trimmed our staff, focused on growing the merchandising platform, and now we’re turning a profit.”
Launched in 2001, San Diego-based Loop’d started as SponsorHouse, a site for amateur action sports athletes (BMX biking, surfing, skateboarding, etc.) to find commercial sponsors. It evolved into a collection of branded social networks that paired companies like Monster Energy, PacSun and Oakley with sports enthusiasts and semi-pro athletes. Release.