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On Heels Of Surphace Purchase, Outbrain Raises $11 Million

Outbrain, which purchased content recommendation service Surphace from AOL (NYSE: AOL) two weeks ago, has now raised $11 million in a third round of funding. The company, which provides publishers with a way of adding related links from their own site and from third-party sites to articles, says it will use the cash to build its sales force and to expand in Israel and Europe.

Outbrain’s related links widgets are used by a number of top publishers including USA Today, iVillage, and Slate. The Surphace acquisition, Outbrain says, will bring it several new customers, notably including AOL. The company makes money by charging publishers who want to have their links “recommended” on sites that install its widgets. The resulting revenue is shared with the site that has the widget installed.

The new funding brings Outbrain’s total backing to $29 million. Investors include Carmel Ventures, Gemini Israel Funds, GlenRock Israel, Rhodium and Lightspeed Venture Partners. More in the release here.