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James Murdoch’s Firm Is Among First to Invest in Morning Consult

James Murdoch’s Firm Is Among First to Invest in Morning Consult

(Bloomberg) -- James Murdoch’s Lupa Systems is making an investment in market research startup Morning Consult, known for its surveys and modernizing political polling.

The company raised $31 million in its first institutional investment round since launching in 2014 from a Washington row house. The funding, which also includes capital from Advance Venture Partners, values the company at $306 million, according to a statement.

Morning Consult tracks U.S. sentiment about the upcoming presidential election, which are often covered by large news outlets. It said on its website that it correctly called the 2016 presidential election within 1% of the final popular vote margin.

The company also surveys U.S. residents about the government’s coronavirus response and consumer confidence.

Morning Consult has branched into doing surveys on behalf of corporate clients including International Business Machines Corp., Prudential Financial Inc. and CVS Health Corp. It provides data to help companies analyze their reputation and it said that half of the Fortune 500 companies are clients.

The six-year-old startup is on track for $50 million in revenue this year and that the business is profitable, said Chief Executive Officer Michael Ramlet in an interview.

With its online and text surveys, Morning Consult has taken a more modern approach than other polling firms, Ramlet said. Traditional players in the space are facing obstacles due to “a cultural change in which people do not answer random phone calls” like they did decades ago, he said.

“For decades, legacy market research firms have failed to evolve, creating a critically unmet need for innovation,” Ramlet said in a statement.

Traditional polling companies include Kantar Media, Nielsen Holdings Plc and Ipsos.

Lupa Systems is a private investment firm founded last year by James Murdoch, the son of media magnate Rubert Murdoch. It previously invested in Vice Media and the owner of the Tribeca Film Festival.

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