Dallas-based influencer marketing and social platform LTK announced it secured a $300 million investment from SoftBank Vision Fund 2. The funding round announced on Monday also raised the company’s valuation to $2 billion.
LTK works on the simple premise of directing users to purchase the same items posted by influencers they already follow. Whether it is a new coat, a bedding set, makeup, coffee mugs or even a high-end ottoman, all items posted on the platform are linked and direct the customer to a website where the item can be purchased.
Its app works differently than others like Instagram where sponsored content often only involves tagging a company page. On LTK, a company’s products are linked in a visually pleasing format. Besides that, LTK also offers brand consulting, end-to-end campaign management and analytics for partnered companies.
For sponsored content, LTK uses data to connect companies with appropriate influencers to reach an intended audience. Annually, shoppers purchase more than $3 billion worth of products posted by influencers on the LTK platform, according to a prepared statement.
LTK launched in 2011 under the name rewardStyle before changing to LIKEtoKNOW.it (LTK). The platform has since become a popular place to market due to the easy navigation from an influencer’s photo to purchasing the item. According to LTK’s website, it has partnered with over a million brands and 5,000 retailers.
LTK stated it will use the new capital to “aggressively” hire to grow its tech platform, increase international presence and offer new products for brands and creators. Currently, LTK has several job openings in the DFW metro. Remote positions are also available.
“We believe there is a paradigm shift in the way consumers shop, which has highlighted the tremendous role creators play in guiding the online retail experience,” Lydia Jett, managing partner at SoftBank Investment Advisers, said in a statement. “LTK has built a seamless shopping platform that now reaches millions of monthly shoppers in more than 100 countries.”
With the investment, Investment Director at SoftBank Investment Advisers Angela Du joins LTK’s board of directors.