Anzu raises new funding for in-game advertising platform

Anzu, an in-game advertising platform, has raised $20 million with NBCUniversal and HTC as new investors, CEO Itamar Benedy tells Axios.

Why it matters: In-game ads are expected to generate about $14 billion in revenue in 2028, up from $6 billion in 2020, according to a recent report from Research Dive.

• In-game ads also help brands reach an engaged (and often younger) audience.

Details: Other investors for the round included WPP, Sony Innovation Fund, BITKRAFT Ventures, HBSE Ventures, Alumni Ventures Group, The Chicago Cubs, Goal Ventures and Riot Games co-chairman Marc Merrill. All are previous investors.

• Anzu has raised $37 million in total, most recently raising $9 million in February 2021.
• Benedy says Anzu is focused on hiring for sales and marketing and new product development.

Anzu is also eying acquisitions. Before founding Anzu, Benedy was CEO of Glispa, a mobile ad tech company, where he oversaw four acquisitions. "I'm a very big believer of combining organic and inorganic growth," he says.

How it works: Anzu's platform offers ads in mobile, PC and console games. It added Roblox last year. While Benedy says Anzu initially focused on ads in virtual reality, it now offers programmatic ads across platforms.

• "The big mobile advertising companies want to focus on intrusive ads that take you out of the game. We want to find something in the middle to still make the game free," Benedy says.

By the numbers: Benedy declined to disclose valuation and annual revenue.

• Anzu has tripled its valuation year by year over the past three years. Benedy also says it's bringing in more revenue each quarter, on average, compared to the prior aggregate revenue, but remains unprofitable.
• Anzu has 80 employees, doubled from last year. It plans to reach 150 employees before end of year. The majority are based in Tel Aviv.