More Money for iPhone Ads: Medialets Raises $6 Million

We don’t know how the mobile ad business will look or how big it will be, but it’s a pretty safe bet to assume it’s going to be a lot bigger than it is now. Which makes investors quite happy to throw money at it.

Latest example: A $6 million B round for Medialets, a two-year-old New York company best known for making “in-app” ads for Apple’s (AAPL) iPhone platform, as well as for Google’s (GOOG) Android, etc.

Existing investor Foundry Group, which led a $4 million A round a year ago, leads this one as well. DFJ Gotham is also in again, and new money includes Dave McClure’s 500 Startups incubator and Chris Saridakis, who until recently was Gannett’s (GCI) chief digital officer.

A good chunk of this deal already closed months ago and leaked out via a Series D filing; I assume that new investors have joined the round since then, but I don’t have details.

August 10, 2010: NEW YORK, NY – Medialets, the most widely deployed cross-platform rich media advertising provider for mobile, today announced the closing of a $6 million Series B financing round led by investor Foundry Group, with participation from DFJ Gotham, 500 Startups and Chris Saridakis. Medialets will use the funds to expand the capabilities of its mobile rich media ad platform and supporting tools in order to bring rich media ads to the broadest range of advertisers possible.

“Medialets was founded in 2008 on the understanding that mobile would unleash a powerful engagement opportunity for advertisers,” said Medialets CEO Eric Litman. “Since then, not only has Medialets enabled the industry’s most compelling mobile rich media for premier publishers, agencies and brands, we’ve also built out a one-of-a-kind cross-platform infrastructure that brings greater efficiency and scale to mobile rich media campaigns. This Series B funding allows us to continue to evolve the Medialets’ platform to meet the phenomenal demand for high-value mobile rich media.”

Since its inception in June 2008, Medialets has pioneered the creation, delivery and measurement of the most highly engaging rich media ad formats for mobile. In 2009, Medialets created and served the world’s first rich media ad for mobile apps. Earlier this year Medialets followed up on the release of its Universal SDK for iPhone and iPad with the launch of Android advertising support, making Medialets the first provider of cross-platform rich media ads for mobile apps. More recently, Medialets introduced Medialets Enrichä, a partner program that significantly reduces the complexity of mobile advertising for buyers by enabling them to deliver and measure the same creative campaign on different mobile platforms and across Medialets’ partner ad networks, mediators and ad servers.

“Medialets has set the standard for creative and technological innovation in mobile rich media,” said Seth Levine, Managing Director of Foundry Group, Medialets lead investor. “By providing a scalable platform that uniquely addresses the challenges of mobile for both publishers and brands, Medialets has staked out its position as market leader early in the game and will continue to be a driving force in the rapidly growing mobile advertising market.”

A world-class executive team, assembled within the past year, has spearheaded Medialets’ tremendous growth. Keith Gelles, co-founder of PointRoll, joined Medialets as Chief Technology Officer joined the team in July and Aaron Mittman, a former executive at Panther Express and DoubleClick, joined the team in September as Vice President, Global Sales. More recently, Andrew Eisele, formerly of TargetSpot, joined Medialets as the company’s first Chief Financial Officer. The executive team is supported by an advisory board that includes Greg Tagaris, former CIO DoubleClick, Andy Ellenthal, CEO Peer39, Ari Paparo, VP Digital at Nielsen and former Group Director of Advertiser Products at Google, Shervin Pishevar, Chairman SGN, and Colin Crawford, former CEO MacWorld/PC World.