Seattle startup behind Amazon gift guides on your feed just raised $20 million
This time of year, online shopping dominates social media. You hardly have to scroll to find influencers on Instagram and TikTok hawking stocking stuffers, gifts for her under $50, and the best white elephant gag. So-called affiliate marketing is big business for content creators and brands, which are poised to spend more than $10 billion on influencer advertising by the end of the year.
That’s good news for Seattle startup Levanta, which connects Amazon sellers with influencers on social media. The company just secured $20 million in funding to grow its platform.
“Amazon sellers really wanted to work with content creators and there just wasn't a good system or infrastructure to allow those relationships to happen,” said Levanta CEO Ian Brodie. “That's what we unblocked.”
Content creators can earn commission directly from Amazon, but Brodie said it’s lower than the cut they can get by partnering directly with third-party sellers through Levanta. Since launching in early 2023, Levanta has added about 1,000 sellers and more than 7,000 content creators to its platform.
Critics say social media marketing can be deceptive to users who think they’re getting unbiased recommendations. In the past, influencers didn’t have to tell followers when they were paid to promote a product, but most platforms now require them to disclose that information. Levanta’s terms of service also require creators to tell viewers when they could earn a commission.
“As you get more AI, you get more ads [and] people are longing for a more human connection,” Brodie said. “When you're searching for products, you want to know what real people use.”
Levanta currently employs about 30 people, but plans to double its headcount with the new funding to keep up with the growing demand for affiliate marketing services.