Facebook marketing platform GraphEffect has raised $2 million in financing from LowerMyBills founder Matt Coffin and x+1 president Stephano Kim as well as VC firms Thrive Capital, CrossCut Ventures, Rincon Venture Partners, Founder Collective, Lerer Ventures and Baroda Ventures.
GraphEffect helps brands and agencies leverage Facebook for advertising and lead generation purposes. The company, formerly called Focused Labs, relies on social performance algorithms to target Facebook ad campaigns, increase user engagement with Facebook fan pages and increase downstream conversions through the Facebook feed.
With the cost of advertising to convert a user into a fan on a brand’s Facebook page being estimated at $1.07 a fan, GraphEffect is in a lucrative business. The company is also participating in the Facebook Advertising API Beta, getting a first mover advantage in the Facebook ad management department.
The LA-based GraphEffect was co-founded by Clark Landry and James Borow and reached profitability in 2010. It will be using the new cash to bulk up their sales and technology divisions as well as expand the platform.
Said Borow about the new financing, “Over the past year we have driven millions of new fans and customers for our clients. Our goal from day one has been to become the leaders in the social advertising space, and we are confident in our ability to achieve this with the help of our new partners.”