embraase secures funding for real-time optimization of mobile apps

May 20, 2014

The Berlin-based startup embraase collects a six-digit investment from High-Tech Gruenderfonds (HTGF) and Axel Springer for its A/B testing and personalization platform for mobile apps. The capital will be used for further product development and distribution setup.

There are as much as 2.5 million mobile apps available on the digital distribution platforms of Apple (iOS) and Google (Android) while up to 7,500 new ones are released every day. The competition for the users´ attention is already tremendous and as a result the marketing costs for mobile apps have skyrocketed. But on the downside, only 1-2% of users become paying customers and user fluctuation is extremely high.

In this environment it is crucial to offer everyone an outright compelling user experience. Only a truly convincing experience will ensure that the app is recommended and used repeatedly. And only a loyal users will ultimately turn into paying customers. In order to permanently satisfy user demand, an app must be continuously adapted and improved. Bearing in mind that not every user has the same needs. This is where embraase comes in.

The Software-as-a-Service solution embraase (www.embraase.com) is targeted at mobile app developers and publishers and enables individual optimization of mobile apps for different user segments. For this purpose, native app elements can be exchanged and adapted with embraase without re-submitting the app. The normally required but time-consuming update process can be skipped completely and the adjustments are injected in real-time into the user´s app.

With embraase all graphic and UI elements such as backgrounds, colours, texts etc. up to entire menu flows can be optimized and adapted as often as necessary. embraase also permits the selective activation and deactivation of whole features. All these adjustments can be target to reach all users or only certain user groups. Practically, the team has identified two use cases that they will focus on initially: A/B testing, i.e. the data-supported optimization through simultaneous testing of several variations directly on the user, and personalization, the targeted supply of individually adapted content to different user groups. Already back in February, the Berlin-based company could successfully convince the HTGF and Axel Springer to invest into this concept.

“Adapting to user behavior and improving conversion rates is essential to the success for virtually every mobile app. We expect a solution like embraase to have the same impact as it was the case with comparable web-based products. The team combines all relevant skills to build a successful company around this concept”, explains Stefan Wendel from HTGF, substantiating the investment decision. The cash from the financing round are mainly used for product development, product launch and distribution setup.

About embraase
embraase is the product of the Mbaas Development GmbH, a startup headquartered in Berlin-Friedrichshain. Mbaas was founded mid-2013 by Christian Stanke and Steffen Roemer and markets embraase as A/B testing and personalization platform for mobile apps. With embraase, app developers and product managers can analyze their users’ behaviour and optimize their apps accordingly in real-time. Most recently the startup was part of the 2nd batch of Axel Springer Plug&Play Accelerators. embraase is currently in the Closed Beta Phase with selected Berlin-based startups.

Mbaas Development GmbH
Christian Stanke, CEO & co-founder
Steffen Roemer, CTO & co-founder
Frankfurter Allee 53
10247 Berlin
Phone: +49 176 239 434 90
Fax: +49 30 864 50 309

About the Axel Springer Plug & Play Accelerator
Launched in 2013, the Axel Springer Plug and Play Accelerator is a Berlin-based accelerator looking for trail-blazing digital entrepreneurs. We’re more than just an accelerator: we provide global opportunities from day one, through our international network in Europe and Silicon Valley.

Three times a year, we run a three month-long program in which we provide startups with office space in the heart of Berlin, coaching, workshops, networking, 25,000 euros, events and more.

The program ends with the Demo Day, where startups will have the opportunity to pitch in front of an elite audience of local and international venture capital firms for additional seed and Series A funding. Plus, startups have the chance to meet Silicon Valley investors as well as go to Silicon Valley. The next program starts in July 2014.

Axel Springer Plug and Play Accelerator GmbH
Axel-Springer-Strasse 65
10888 Berlin
Phone: +49 30 2591 78001

About High-Tech Gruenderfonds
High-Tech Gruenderfonds invests in young, high potential high-tech start-ups. The seed financing provided is designed to enable start-ups to take an idea through prototyping and to market launch. Typically, High-Tech Gruenderfonds invests EUR 500,000 in the seed stage, with the potential for up to a total of EUR 2 million per portfolio company in follow-on financing. Investors in this public/private partnership include the Federal Ministry of Economics and Energy, the KfW Banking Group, as well as strategic corporate investors including ALTANA, BASF, Bayer, B. Braun, Robert Bosch, CEWE, Daimler, Deutsche Post DHL, Deutsche Telekom, Evonik, Lanxess, media + more venture Beteiligungs GmbH & Co. KG, METRO, Qiagen, RWE Innogy, SAP, Tengelmann and Carl Zeiss. High-Tech Gruenderfonds has about EUR 576 million under management in two funds (EUR 272 million HTGF I, EUR 304 million HTGF II).

High-Tech Gruenderfonds Management GmbH
Stefan Wendel
Investment Manager
Schlegelstraße 2
53113 Bonn
Phone: +49 228 823001-00
Fax: +49 228 823000-50


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