GraphEffect is like Yammer for social media marketers, and it just raised a $12 million round of financing led by Rincon Venture Partners. Rincon’s Jim Andelman will be joining GraphEffect’s board of directors.
The two-year-old company is generating significant revenue on its own; revenue has more than tripled year-over-year.
GraphEffect is expected to generate $40-50 million this year, up from $12 million last year and $1.6 million in 2010 when the company was founded.
GraphEffect is an enterprise collaboration platform for social media marketers. It works with brands such as American Express, Red Bull and Toyota to help them advertise on Twitter and Facebook efficiently.
“You have media buyers, ad agencies and Facebook representatives,” says cofounder James Borow. “There are too many cooks in the kitchen. We help parties across all of the organizations work together on the social media marketing initiatives.”
GraphEffect’s platform is free to use and it only charges the marketers when ad money is spent on Facebook or Twitter.
Ad agencies seem to fully support GraphEffect; a number of industry executives from Digitas, Porter Novelli, Ogilvy, P&G, Facebook, Twitter and Collective Media have joined its advisory council.
The $12 million financing will help GraphEffect expand to other social media platforms, such as LinkedIn and Pinterest. It will also use the financing to expand its product and development teams.
The Santa Monica startup currently has 45 employees; it has raised $14 million to date. Other investors include Lerer Ventures, DFJ Frontier, Thrive Capital, Founder Collective, Crosscut Ventures, Baroda Ventures, Matt Coffin, Alex Karelin and Siemer Ventures.
The financing will help GraphEffect scale to other social media platforms like Pinterest and LinkedIn.