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ContextWeb:the ADSDAQ company raises $26 million in series D

July 22nd, 2008 • Related • Filed Under

ContextWeb, Inc., the contextual advertising company and operator of the ADSDAQ Exchange, today announced that it has closed a $26 million Series D round of funding.

“We had tremendous interest in the company and received numerous good financing proposals,” says Anand Subramanian, CEO of ContextWeb, Inc. “We chose Investor Growth Capital as our partners to lead the round for their market expertise, track record in creating sector leading companies and ability to help us expand in markets outside North America, especially in Europe.”

All of the existing investors in the Company, which includes DFJ, DFJ Gotham Ventures, Updata Partners, DFJ New England, plus Gold Hill Capital also participated. This round of funding, combined with three previous rounds, brings ContextWeb’s total equity investment to date to $54 million.

According to a study by eMarketer, online contextual ad spending in the U.S. will generate $1.4 billion in 2007 and grow to a $2 billion market by 2008. IDC reports that internet ad spending in Q1 ‘08 was up 23.9% compared with the same period in 2007. Online advertising is expected to overtake radio advertising in 2008, when total, global online ad spending hits $44.6 billion according to ZenithOptimedia. These figures indicate a significant growth opportunity for ContextWeb.

“This round of funding will help propel current and future product releases as we rapidly grow the ADSDAQ Exchange. Our Agency Trading Desk, Publisher Reach Extension Program, Self-Serve Publisher Selling Desk, Self-Serve Advertiser Buying Desk and Buying Desk for Vertical Ad Networks all provide scalable solutions for advertisers, ad agencies and publishers. Noah Walley is a great addition to what is already a very strong board. Our company is extremely well positioned to meet our customers’ evolving and diverse online advertising needs,” says Mr. Subramanian.

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