Giphy, the NY-based platform that is all things GIF, just raised $72 million in funding from Draper Fisher Jurvetson, China Media Capital, and Institutional Venture Partners.
According to Crunchbase, that’s a total of $151 million in total funding money, with a valuation of around $600 million according to the Wall Street Journal data.
Ever since Giphy started running as a part of the Hacker-in-Residence program within betaworks, the goal was to allow people of the social media as well as content creators to search and share GIFs with more ease. Ever since the beginning, the company evolved and now allows its users to turn videos into GIFs and create portfolios within the website.
That being said, Giphy doesn’t have any form of profitable monetization. Instead, it offers its resources to media companies for free, which enables publishers to turn their content into GIFs. Here’s another fun fact about Giphy’s strategy, and probably something you didn’t know – Giphy has a team which helps broadcast events and turn media events, such as the Academy Awards Ceremony, into a library of GIFs in real time!
The whole point of it being free is that this strategy allows Giphy to offer its services without copyright restrictions, and the public can create and share GIFs we all love so much.
Although this non-profit plan might seem useless in the long run, Alex Chung, the CEO of Giphy, confirmed that there is massive potential in terms of advertising. During the TechCrunch Disrupt in San Francisco in September this year, Chung explained that GIFs could serve as a great form of native advertising for mobile messaging platforms. A great example is Whatsapp, which recently introduced sharing GIFs as an option for its users.
Aside from native advertising, Giphy also has great chance to monetize the way Google Search does, meaning it could give out sponsored search results.
Chung states that as long as the service keeps developing and the investors keep believing in the company, Giphy will stay put in terms of monetization.