< 2006 News Listings Tacoda Raises $12 Million to Challenge Rivals by Amanda Fung March 14, 2006 Online advertising firm Tacoda Inc. said Tuesday that it raised $12 million to build its sales force and challenge bigger rivals such as Yahoo and Time Warner Inc. unit Advertising.com. Rho Ventures, a Manhattan private equity firm, led the round of financing. Tacoda has raised over $26 million from investors including Union Square Ventures and Masthead Venture Partners. Tacoda delivers ads to consumers based on their Web-surfing habits. Last September it stopped selling its behavioral ad technology directly to clients and created a network of Web sites to deliver banner ads with moving images and video ads on behalf of advertisers. "Business has been progressing really well. We have strong investors," said Dave Morgan, Tacoda chief executive. "We are able to grow on the sale of behavioral advertising to large scale networks." Tacoda recently tripled the number of Web sites where it delivers ads to more than 3,000. The firm expects to work with 200 advertisers by year end, four times the amount now. Tacoda has delivered ads for top brands such as Honda, Panasonic and Delta. Mr. Morgan declined to disclose financials, but says Tacoda has been profitable since it launched in 2001. The company plans to boost its headcount by 60% this year from 50 now, he said. (c)2006 Crain Communications Inc.
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