You’ve surely seen Kontera‘s double-underlined links in the middle of a news article. Kontera’s technology analyzes the text content of a web page, then places ads behind keywords in the page. Rolling over the link pops up a small window with an ad in it, as shown here. Advertisers bid for the spot.
The company has announced the closure of its third round of funding, led by Sequoia Capital with participation by Tenaya Capital and Carmel Ventures. This brings Kontera’s funding to $32.8 million, much of it from Sequoia.
Clearly, investors believe Kontera has the potential to pay off. That may be in part because the company keeps a bigger cut of advertisers’ payments than rival Infolinks. Blogger Diva Sai earlier this year reported that from his firsthand experience, “the difference in the [payment] values between Kontera and Infolinks is not by a few cents but you will be amazed to know that they are differed by 10-20 times. Now that means, to earn any particular amount (say $50), if it requires 30 days through Infolinks, then it will approximately require 300-600 days (1-2 years) through Kontera.”
Founded in 2006, Kontera is based in Herzliya Pituach, Israel, and has offices in San Francisco and New York.
[Image from VC Cafe]