Recommendation systems developer Gravity raised an additional $2 million in investment funding, which the Budapest-based company said it will use to strengthen its presence in the U.S. In this funding round, all former investors are co-invested with Portfolion, the venture capital division of independent banking group OTP.
Gravity’s collaborative filtering-based recommendation system provides personalized product recommendations for IPTV, cable TV providers, e-commerce and e-media companies, which the company said increases revenue by 8-12 percent.
“We believe that recommendation systems are the next big marketing tool after search and social media,” said Peter Csikos CEO of Gravity. “The key to Gravity’s growth is the outstanding engagement and unique innovative approach of our team.”
Gravity builds user profiles by combining explicit user data, like ranking, liking and favoriting with implicit data such as item viewing time, number of views and actual purchases. This data is then factored in with the data collected from all other users to calculate an individual’s likely preferences.
Photo by flickr user Lars Plougmann, used under Creative Commons license