Netsertive Closes $10M B Round in Equity/Credit FacilityPEHUB Aug 14, 2012 Back to press
Netsertive, the North Carolina-based advertising technology firm, closed a $10 million financing in the form of a $7.3 million B round and a $2.5 million credit facility. Harbert Venture Partners, of Richmond, Va., led the equity round and was joined by RRE Ventures and Greycroft Partners. The company’s A-round backers included RRE, Greycroft, and totaled $4.5 million in 2010.
Netsertive, a fast-growing ad tech firm specializing in localized digital advertising and channel marketing technology, today announced it has closed $10 million in a combination of a $7.3 million round of Series B equity financing and a $2.5 million credit facility. Netsertive’s proprietary platform helps local businesses, multi-location retailers and product brands reach target customers in their respective local markets with automated digital marketing.
Local marketing spending in the United States totals more than $130 billion annually. According to research firm BIA/Kelsey, about $21 billion of that has already shifted to newer forms of interactive digital marketing, and that amount is projected to double to nearly $40 billion within four years, driving a massive market opportunity. In addition, there is over $22 billion in co-op funding made available to local retailers, though a major portion of that goes unused or is deployed inefficiently. Netsertive brings automation and efficiency to that $22 billion in co-op to unlock the power of co-branded performance marketing at the local level, and eliminate burdensome reimbursement processes for both the brand and the retail partners.
The company provides standalone localized campaign automation as well as its innovative Digital Co-Op system that combines brands and local channel partners in turnkey, cooperative online ad campaigns. It applies its patent-pending technology in specific vertical markets including Audio/Video & Security, Home Goods, Automotive, Sports & Fitness, and Medical Practices.
“We have a simple vision: creating innovative technology to connect local consumers to products and businesses,” said Brendan Morrissey, CEO, Netsertive. “We’ve tapped into a massive market that has gone largely unnoticed for years. Ninety percent of local purchase decisions are influenced by online experiences. Our technology and team unlock the power of online discovery for businesses in local markets. It’s been a thrill to see the tremendous impact we’ve had on hundreds of businesses and brands around the country.”
Harbert Venture Partners, of Richmond, Va., led the equity round and was joined by existing Series A investors RRE Ventures and Greycroft Partners, both of New York City. Debt financing was completed with Square 1 Bank, Durham, N.C.
“We’ve watched Netsertive grow rapidly over the past three years, and we’re convinced that their team and technology is solidly positioned to be a market leader in the channel marketing and local digital advertising arenas, both large and growing markets,” said Wayne Hunter, managing partner with Harbert Venture Partners. Hunter, who has joined Netsertive’s board, added “we were particularly excited with their vertical specialization and channel marketing innovations that have attracted many notable brands to their platform.”
“This latest round of financing enables us to continue expanding our capabilities, scale the business, and deliver more solutions for brands and local businesses that help them drive more revenue,” said Morrissey. “We’re thrilled to have Harbert Venture Partners joining our team and to have RRE and Greycroft continue to help us build on our fast growth.”
Netsertive secured a $4.5 million Series A round in late 2010. Since that time, revenue has increased seven-fold and they’ve hired more than 50 employees. The company expects to hire at least 60 more in the next 12 months to meet demand and extend its technology platform with more products.
As a result of its continued fast growth, Netsertive will be relocating to a larger corporate headquarters in RTP this fall.
“We were founded in the RTP region and are committed to staying here,” said Morrissey. “We are excited to add such a significant number of jobs to this dynamic community.”
Netsertive (http://www.netsertive.com) has moved to the forefront of the digital ad tech industry with a vision of using technology to connect local consumers with products and businesses. Based in Research Triangle Park, N.C., the company automates localized digital advertising and channel marketing solutions, leveraging online search, online display, social media and mobile platforms. It provides standalone localized campaign automation as well as its innovative Digital Co-Op system, which combines brands and local channel partners in turnkey, cooperative online ad campaigns. Serving specific vertical industries, Netsertive helps local businesses, multi-location retailers and national brands increase sales in targeted local markets. Its expert team, patent-pending technology and unique platform drive results for clients across North America. Founded in 2009, the company has a history of rapid growth, a world-class team, and the strength of venture capital funding from top firms RRE Ventures, Harbert Venture Partners and Greycroft Partners.