Adap.tv, one of the contextual video ad firms we’ve been following closely, has closed a $10 million round from Redpoint Ventures and Gemini Israel Funds. The Series A round includes a small portion of money that Gemini had previously contributed to the startup.
Adap.tv CEO Amir Ashkenazi told us today that the company, which places text ads within videos, had created “an effective monetization engine; we generate substantial incremental revenue for partners.” The ads are generating click-throughs that are approaching the levels of search ads, he claimed.
Adap.tv is currently deployed only on Metacafe, where it initially launched in the travel and videogames categories and since has expanded into four more, including sports and technology. It also has a deal with thePlatform.
“The funding will allow us to be a lot more aggressive about our expansion,” said Ashkenazi, who said the money would be applied to hires across the board.
See our previous coverage of Adap.tv and its competitors for more information.