Adchemy, the six-year-old online ad technology company, has raised $61 million in a Series E funding round led by Microsoft.
Adchemy, which currently has 160 full-time employees, hopes to add between 50 and 80 more staff in the months ahead. About half the company’s workforce is in engineering.
This round brings the total venture capital invested in Adchemy to $116 million, Adchemy CEO Murthy Nukala said in an interview on Tuesday. But none of this money will be used to cash out early investors: It will all be put toward corporate growth.
Mainly the new funds will be put toward turbo-charging the development and delivery of Adchemy’s IntentMap product, which acts as a virtual layer between advertisers and search engines. IntentMap’s technology purportedly does all the keyword selection heavy lifting for online advertisers. IntentMap works with Microsoft Search as well as Google Search, Nukala said, and it is a boon to advertisers because it is very easy to use.
“All an advertiser has to tell us is the products they are selling, and we take care of understanding all of that and our software develops all the relevant keywords they need to communicate to the search engine,” Nukala told me. “This should not be a human-scale problem; you need machines to solve it. What we’re doing is automating a lot of the keyword selection process that is largely done manually right now.” Adchemy sees its technology, essentially, as a VMware for online advertising — a virtual layer that ideally optimizes the performance on all sides of ad-serving operations.
Besides Microsoft, Adchemy’s other investors include August Capital and the Mayfield Fund.