SimpleReach Raises $9 Million, Lands New CEO
New York startup SimpleReach has raised new funding and replaced its CEO, founder and former CEO Edward Kim tells Term Sheet. New funding for the "content data platform" startup totals $9 million, led by Spring Mountain Capital. Hal Muchnick, formerly of DoubleClick, Kontera, AddThis, and LowerMyBills, will become CEO.
This news is notable for two reasons:
1. In the last year, investors have viewed any startups related to advertising and marketing as toxic, in part, because the category was over-capitalized and VC portfolios are over-exposed to struggling assets.
2. Kim's move from the CEO role is notable because it goes against the prevailing narrative among startups that says founders should avoid handing their companies over to a more professional CEO. Those that didn't willingly step aside risked being forced by their investors.