Estonia-based startup Modash has secured $12 million in Series A funding led by henQ, a Dutch venture capital firm known for backing unconventional ideas. What makes Modash stand out, according to CEO Avery Schrader, is their firm belief in the potential of influencer marketing, a space many are skeptical about these days.
Unlike competitors like CreatorIQ and Upfluence, which primarily focus on influencers with large followings, Modash takes a different approach. The platform allows brands to tap into a vast pool of over 250 million content creators by scraping publicly available data. This means brands can connect with niche creators who, despite having smaller followings, boast highly engaged audiences that value their recommendations.
This fresh perspective aims to disrupt traditional influencer marketing, where high-profile influencers often face backlash for promoting products. By not requiring creators to sign up, Modash simplifies scaling, addressing challenges that have plagued pure marketplace models.
Despite the skepticism surrounding the creator economy, Schrader remains optimistic. He acknowledges the challenges faced by previous VC investments in the space but emphasizes that content creators are essential to the digital landscape. “Creators will keep making content,” he asserts, highlighting the potential for helping them monetize their influence.
Schrader, a 26-year-old Canadian originally from Nova Scotia, moved to Estonia after learning about its burgeoning tech scene. His journey led him to work with local startups, including Estonian scale-up Bolt, which was among Modash’s first clients. The startup’s vision is to provide brands with a comprehensive platform for sourcing creators, analyzing campaigns, managing payments, and more, with pricing starting at $199 a month.
Estonia has proven to be a fertile ground for Modash, where Schrader connected with co-founder and CTO Hendry Sadrak and other founding team members. With 40-50% of the team based in Estonia, many have backgrounds in prominent local startups like Bolt and Pipedrive. Modash has seen rapid growth, expanding from 25 to 60 employees this year, with plans to cap the team at 99 to maintain agility.
To further enhance its platform, Modash is focusing on hiring data engineers to develop AI-driven discovery features. Additionally, the startup plans to strengthen its customer-facing roles in North America, where Schrader intends to spend a significant amount of time.
With international expansion and a greater emphasis on e-commerce in the pipeline, Modash is gearing up for its next growth phase as it approaches its Series B funding round. The startup's innovative approach to influencer marketing not only highlights the potential of niche creators but also sets the stage for a more engaging and authentic connection between brands and their audiences.
