AppNexus, a provider of a platform for buying real-time online advertising, announced it secured $5 million in funding from Kodiak Venture Partners with particpation from other current investors Venrock and First Round Capital.
The New York-based startup said it provides buyers of online ads with a proprietary gateway to leading ad exchanges and ad inventory aggregators. So it isn't exactly competing with giants like Google/DoubleClick or Yahoo/Right Media.
Brian O'Kelley, CEO of AppNexus stated, "Display advertising is undergoing a period of profound transformation. Ad inventory aggregators are opening up and embracing the auction-based model, creating a host of new challenges and opportunities for buyers."
The company plans to use the round to expand on its business and hire top industry talent.
Chip Meakem, Managing Director at Kodiak Venture Partners believes, "AppNexus is uniquely positioned to capitalize on the rapid growth in the real-time bidding marketplace. This extra capital allows AppNexus to further leverage its market leadership position. Plus, we wanted to own more of the company.”