June Group

Mitchell Rich left his corporate job at Bates Interactive in 2001 after running a large department. He spent four years tinkering and scrapping, trying to figure out what he wanted to build. Coming from an advertising and web development background, he met his future partner Corey (who was consulting for Sony) and together they decided to build a video distribution platform. When ad tech was really starting to take off, they launched June Group in 2005 with a simple mission: make advertising transparent, honest, and actually deliver results.

The early years were bootstrapped from Mitchell's house. From 2005-2008, they were in a "scraping and scrapping" phase, gradually building the platform's sophistication. By 2007-2008, they were processing around a million dollars in total ad spend and taking in approximately $1-2 million in revenue. They were disciplined about reinvesting profits back into the business rather than taking significant personal income. To help with cash flow during these lean years, they secured mezzanine debt from Western Technology Investment (WTI) for millions of dollars—a move that proved crucial to their survival and growth.

June Group's core innovation was charging for actual engagement rather than impressions. Instead of traditional CPM (cost-per-thousand) models, they pioneered cost-per-engagement pricing. Brands like those in the spaghetti sauce space could target specific demographics (e.g., Hispanic moms 35+) and only pay when users actually opted in to watch video ads. The platform leveraged app integrations—where users could earn rewards or unlock content by engaging with branded videos—making advertising feel voluntary rather than interruptive. This resonated with major household brands seeking more authentic audience connection.

The biggest win was focusing on profitability over growth-at-all-costs. While much of ad tech was burning cash trying to scale fast for venture exits, June Group stayed disciplined. They grew 10-25% year-over-year profitably. Their sophisticated SDK and app integration strategy required publishers to put in technical effort to integrate, but this kept the bar high and created stickiness. By 2015, after 10 years of bootstrapped success, they were still profitable and had significant cash in the bank—which is why they could be selective about raising capital. They chose a private equity partner (Howden Capital) who brought institutional credibility and operational expertise rather than just cash, enabling them to approach bigger holding company clients and corporate deals.

In 2017, June Group had grown to 75 employees across four U.S. cities, processing significantly more than the $1M they handled in 2008. They raised $28 million in their private equity deal in 2015, yet remained profitable and cash-positive even with the infusion. Mitchell Rich himself became a case study in "the slow profitable hustle"—building a real business over 12 years rather than chasing a quick flip. The company had proven that there was a sustainable, profitable model in ad tech by staying disciplined, focusing on customer value, and reinvesting profits intelligently.