cardagin-networksCardagin Networks is based on the idea that there should be an easier way to do loyalty cards in the era of smartphones.

It lets small- and medium-sized businesses send out targeted mobile advertisements and track customer habits to market to them effectively in the future. The Charlottesville, Virginia-based company has raised about $150,000 in a friends and family round and is launching today at DEMOfall 09, the technology conference co-produced by VentureBeat.

Cardagin is moving in on an area that’s ripe for change with growing smartphone penetration, but it will have to contend with a number of other bigger competitors including players like Foursqaure, Twitter and Facebook. These companies already have widespread traction among consumers and could roll out small business advertising solutions on mobile phones. There are also other smaller contenders like Scanaroo and CardStar.