Hummingbirds is a female-founded startup that connects hyperlocal content creators with locally based brands, rewarding them for sharing their products with small, engaged communities through social media.
The company announced its latest funding round of $5.4 million on Wednesday, bringing its total raised to $10 million. The new capital will support expansion of the platform to more than 20 cities by 2025, including Atlanta, Georgia. Charlotte, North Carolina; Denver, Colorado.
Launched last year, the platform allows brands to invest in localization and word-of-mouth marketing aimed at building trust with local customers. Small business owners often struggle with local marketing, typically due to limited budgets or competition from established brands. Hummingbirds believe the solution is in your own backyard. That means using ‘PTA moms’ and other creators nearby to help promote your products.
“As (brands) consider how to drive in-store behavior to these retailers, they need new marketing tools. Hummingbirds has really discovered that we can help these brands move quickly, build brand awareness, and build a loyal following. Get customers who come back to your store and buy your products again and again.” Co-founder Charise Flynn told TechCrunch.
Hummingbirds allows brands to launch targeted marketing campaigns targeting local residents, encouraging them to share their products on social media with engaged followers. We currently have over 300 brand partners, ranging from popular brands like Chop Local, Cutwater, Goodles and Olipop to smaller businesses and regional chains like AE Dairy, Century Farm Distillery and Fareway Grocery.
To encourage participation, companies offer rewards such as gift cards ranging from $50 to $250, free experiences (e.g. spa massages), free merchandise, and other perks.
Hummingbirds takes a 0% commission from creators, but brands must pay a fee to launch a campaign on the platform.
The platform focuses on everyday creators who find social sharing a hobby, and most of their followers are friends and local connectors. ‘Nano-creators’ with up to 10,000 followers claim they often achieve higher engagement rates thanks to their loyal followers. The company claims that it can increase sales by up to 14 times and social participation by 80% through its ‘city-specific content’ production strategy.
“Their engagement rates are well above existing industry standards. On average, we are seeing engagement of 3-4%. Most influencers have an engagement rate of 7%,” Flynn said.
Several startups very similar to Hummingbirds have emerged over the years, including Franki, Mavely, Mavn, and Soci, but Hummingbirds stands out in that it primarily targets content creators located in Central America. The platform operates in more than 20 cities, including Des Moines, Illinois. Madison, Wisconsin; Nashville, Tennessee; and Omaha, Nebraska.
This focus is strategic as the company believes this region is often overlooked and challenging for many brands aiming to expand their footprint.
“They don’t know how to market to Central America. (Customers) spend a significant amount of money on groceries, so you can activate the Hummingbird community to build brand awareness and get your products up to speed. It was really beneficial for us to focus on some of the more difficult parts of marketing for them,” Flynn explained.
Co-founder Emily Steele is the visionary behind Hummingbirds. As a small content creator in Iowa, she recognized an opportunity to support local brands in her community.
“Hummingbirds got its start in Des Moines, Iowa, by tasting an oat milk latte, sharing it on social media, and getting others excited to share our city’s small businesses,” Steele said. She also noted that the company’s name came from a nickname her father-in-law called her. Because hummingbirds are “local pollinators” and are always “buzzing about town.”
The company has experienced rapid growth recently. In the past year, revenue has quadrupled, community size has doubled, and it now boasts 11,000 creators.
Participation in the latest round included Allos Ventures, Ground Game, M25 Fund, InnoVenture Iowa Fund, ISA Ventures, Next Level Ventures, and Homegrown Capital.
