Innovative In Home Media Company Hanger Network Closes $8M in Series A Funding
NEW YORK--Hanger Network (hangernetwork.com), the innovative in-home media company behind EcoHangers™, the environmentally friendly hangers which replace common wire hangers used in laundered/dry cleaned shirts, announced today the close of an $8 million round of venture capital financing. Kodiak Venture Partners and Sigma Partners co-led the round, which will help the company grow its sales force and attract additional brands to its stable of clientele who advertise to consumers through the EcoHangers™, which include L’Oreal, Dunkin Donuts and Revlon.
Hanger Network delivers in-home marketing through a proprietary network of 35,000 drycleaners in the US. This offers advertisers a potential weekly circulation of 52 million, covers all 210 DMAs, and has a 100% view rate at a fraction of the cost of a postage stamp. Advertisers can create programs regionally, nationally and by gender, and can include samples, coupons and advertisements. At a time where thanks to innovations like Tivo, DVR and Satellite Radio have limited broadcast advertising’s effectiveness, more major brands are looking to utilize in-home media solutions like EcoHangers™ to directly reach consumers.
Hanger Network will use the capital to establish additional distribution channels and increase its existing national sales force. Also as part of their investment, Chip Meakem of Kodiak Venture Partners and Bob Davoli of Sigma Partners will join Hanger Network’s board of directors.
“As a new media company, Hanger Network is unique in that it not only provides a completely untapped opportunity for brands to reach consumers but also already has an established distribution channel to do so,” said Chip Meakem, General Partner at Kodiak Venture Partners. “We feel that with this investment, the company will no longer be the best kept secret for companies looking to reach consumers in their homes.”
“Chip and Bob understand the new/alternative media market, which few venture capitalists can claim about such a nascent industry,” said Bob Kantor, CEO of Hanger Network. “Their industry and operating expertise will allow us to dramatically increase our revenues and operational markets in a short time.”
Another benefit of EcoHangers™ is that they replace common wire hangers used in laundered/dry cleaned shirts. EcoHangers are made from 100 percent recycled paper board, and are biodegradable and recyclable. Unlike wire hangers, EcoHangers greatly reduce the natural resources used in the manufacturing and disposal of dry cleaner hangers. With three billions wire hangers used in the United States per year, EcoHangers can have a major environmental impact reducing both the consumption of resources and landfill waste caused by wire hangers – which create over 200 million pounds of landfill waste per year.
Because Hanger Networks provides branded EcoHangers to dry cleaners for free, it has an eager distribution channel. For consumer brands, the EcoHangers offer unparalleled exposure as the attractive full color hangers stay in homes for seven weeks or more. Hanger Network’s in-home media platform offers the ideal medium for advertisers in health and beauty aids (HBA), pharmacy, apparel, retail, travel and automotive markets, among others.
About Hanger Network
Founded in 2004, Hanger Network is a partnership between Texas Pacific Group’s Altivity Packaging, Paradigm Packaging a subsidiary of The Standard Group and the nation’s largest supplier to dry cleaning stores, Cleaner’s Supply, Inc., adding propriety distribution to its 35,000 dry cleaner customers. Hanger Network’s revolutionary EcoHangers are made from 100 percent recycled paper board, and are biodegradable and recyclable. For more information visit www.hangernetwork.com
Editor’s note: Email nsteinberg@5wpr.com for photos of Hanger Network’s EcoHangers.