Amino Payments was able to raise $1.85 million in seed funding to make its dream a reality. Some of the top serial entrepreneurs in Philly built the company. This company seems set to take the ad tech world by storm.
The executive team of this startup says that they have created a payment solution that will clear up the online advertising world. Specifically, they are going to target the billions of dollars in losses that companies make via digital ad sales.
According to conservative estimates, almost twenty percent of all ad budgets are lost to fraud, abuse, and waste mainly because of bad practices and bad actors. At the surface of it, everything seems quite straightforward. However, with the ad business worth over $36 billion and growing, it no doubt attracts fraudsters.
One way this happens is where fraudsters claim to have a publisher’s ad inventory, thereby misleading advertisers. Also, they could falsify the terms of an ad contract. Instead of taking just a ten percent fee, the platform ends up deducting a 15 percent fee. It is usually done via hidden charges contained in the fine print. Even major publishers such as the Guardian have fallen victim to such fraud. However, fixing these issues is difficult since the supply chain is opaque. Once you make a buy or place inventory up for a bid, you lose track of the money.
The Amino Solution
Resolving issues of opaqueness the Amino Payments platform will introduce the blockchain to the industry. It will make it easy to enforce the terms of payment and provide a clear trail of every penny that goes into the ad sector. Most advertisers are well aware that most of their advertising dollars go to waste. However, they are not able to tell where exactly they are losing the money.
The founders of this company have themselves ben exposed to the fraud in the ad sector. They have worked in ad companies where the money would mysteriously go missing without getting the desired results. However, trying to audit this process is usually almost impossible.
Amino does not intend to compete with the ad companies. Instead, it intends to complement them. It will provide them with a method that allows them to track the flow of their ad dollars. With the use of the blockchain ledger, users of Amino will be sure that they are getting an accurate picture of what is going on.
The team of 19 at Amino has already begun to work on the project from their HQ in Center City WeWork, which is a coworking space. They aim to bring a working product to the market as soon as possible. They managed to raise $1.85 million in a seed round that was led by Frist Round Capital. The funding round was closed after just two weeks. Most notable is that all the Amino investors are from Philly. The founders all say that they intend to keep the company in the city even after it launches.