Target Partners invests in So1
Pioneer in personalized price discounts secures seven-figure Euro investment
MUNICH / BERLIN, Germany, August 26, 2013-- Munich-based venture capital firm Target Partners (www.targetpartners.de) today announced a seven-figure Series A investment in So1 GmbH (www.so1.net). Thanks to its unique technology based on complex mathematical models, the Berlin startup transforms the frequently quoted concept of segment-of-one marketing into reality. The So1 Engine calculates optimal, individualized price promotions for relevant products, thereby addressing the pressing problem faced by manufacturers and retailers, that of steadily declining marketing efficiency in a multi-billion Euro market.
In the consumer goods industry, consumers nowadays are all given the same discount for special offers, despite the fact that every consumer reacts differently to price promotions and has different preferences in products. As a result, promotions are inefficient, and a large portion of a company's marketing and sales budget is wasted. So1 solves this problem by using proprietary algorithms that calculate the optimal price-off for each individual customer, allowing him or her to switch to specific brands or businesses. This method has been proven to achieve up to ten times more efficiency, since consumers are neither over-incentivized nor under incentivized.
Strong growth potential
Berthold von Freyberg, partner at Target Partners, is convinced of the company's strong growth potential: "Two-thirds of the entire market-relevant budgets of consumer goods manufacturers go to sales promotions that are largely inefficient and have no measurable impact on sales. The So1 team has the potential to radically improve this situation." Von Freyberg estimates the market size in Germany alone to be about EUR 12 billion per year.
So1 was founded in 2012 in Berlin by Raimund Bau and Sebastian Gabel. "We are delighted that Target Partners, one of Germany's leading early-stage venture capital firms, shares our vision. Together, we will now focus on enhancing our product and piloting it in the German consumer goods industry," said CEO Raimund Bau, who previously worked in brand management at Henkel. The eight-member team at So1 consists of former managers from the consumer goods industry, econometricians and computer scientists.
So1 welcomes Heinz Müller and Joachim Schoss as advisory board members
Through their appointment to the So1 advisory board, Heinz Müller, former managing director sales at Henkel and supervisory board member of GS1 Germany, and Joachim Schoss, founder of Scout24 Group, will be actively involved in the strategic management of So1.
Joachim Schoss, one of the most prominent entrepreneurs in Germany, will leverage his expertise at So1 to support the company's strategic direction in the market. Heinz Müller, who in his various sales functions throughout the decades has experienced and helped to shape the cooperation between industry and commerce, will ensure that the concept is embedded into practice: "It has long been known in the industry that the current approach to promotions is inefficient and hampers growth and earnings for both retailers and manufacturers alike. So1 brings together all the skills and technologies needed to fundamentally rectify this problem."
About Target Partners:
With €225 million under management, Target Partners is one of the leading early-stage venture capital firms in Germany. Target Partners invests in new start-up and early-stage companies, and supports them with venture capital during their build-out and expansion phases. With many years of experience as managers, entrepreneurs and venture capitalists, the team at Target Partners supports entrepreneurs in developing and marketing products and services, building organizations, raising money and taking companies public in Europe and the United States.
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Press contact Target Partners:
Agency for enterprise communication
80469 Munich, Germany
Tel.: +49 89 411 53 199
Fax: +49 89 411 53 200
So1 offers a whole new promotional channel for the consumer goods industry. This channel enables manufacturers and retailers to reach consumers with individualized price promotions while simultaneously achieving significantly higher ROIs than previously possibly. The underlying technology, the So1 Engine, uses cutting-edge econometric methods to precisely calculate the price reduction required to move consumers to change brands or retailers. So1 promotions are delivered via popular mobile applications and digital printing technology.
The founders of So1, Raimund Bau and Sebastian Gabel, established the company in 2012, after their work together as consultants supporting numerous consumer goods manufacturers with mathematical models in pricing and budget allocation projects. The So1 Team includes leading marketing scientists, IT experts as well as former executives from the consumer goods industry.
Press contact So1:
Frau Simone Falk
10245 Berlin, Germany
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