GumGum is announcing that it’s raised $22 million from existing investors Morgan Stanley Expansion Capital, NEA spinout NewView Capital and Upfront Ventures. CEO Phil Schraeder said he’ll use the funds to pursue a more aggressive acquisition strategy.
This Series D comes nearly five years after GumGum raised a $26 million Series C. Schraeder told me the company’s “core business has been profitable for years,” and that GumGum now has the ability to turn profitability “on or off” depending on how quickly it wants to grow.
“We have historically not done M&A or acquisitions — those are going to be part of what we do going forward,” he said. “We have built an amazing, strong, profitable balance sheet and team and presence in-market that we want to accelerate and grow.”
Schraeder has been at GumGum for nearly a decade, starting out as vice president of finance before becoming COO, CFO and president. After co-founder Ophir Tanz stepped down last year to run the company’s dental industry-focused spinout Pearl, Schraeder finally became CEO.