AdMob, a mobile advertising marketplace provider based in San Mateo., Calif., has raised $15.7 million in Series C funding from Sequoia Capital and Accel Partners. The round, which brings the total amount of funding for AdMob to $34.3 million, signals the power of the mobile platform for advertising at a time when businesses across the board are tightening their belts — and many startups are laying off staff or shutting down altogether. The investment in AdMob is all the more notable for one of its sources: Sequoia, which recently sounded an alarm bell to its portfolio companies about the tough times ahead.
Sequoia and Accel are encouraging AdMob to grow aggressively, according to V-P of Marketing Jason Spero. And with the extra cash on hand, AdMob’s staff of 80, around half of whom are engineers, could reach 150 by the end of next year. The company has also turned cash-flow positive, he added.
AdMob says it has already served 50 billion ads since it launched in 2006 and over the past year has more than tripled the number of ads it serves each month to around 4.5 billion in September. And it is confident that mobile ad spending will continue to grow in 2009, even despite the downturn.
Mobile advertising is already bucking the trend — thanks in no small part to the iPhone. And AdMob is feeling so confident that with this funding it says it’s now ready to take on larger media companies — like Google.