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Extreme Reach Inc. has received an unspecified amount of equity investment in an inside add-on to their Series A financing, the company reports. The Needham-based company, which digitally delivers video ad content, had so far received $2.6 million from New York-based Greycroft Partners , and Long River Ventures and Village Ventures, both based in Massachusetts.
The add-on is the firm’s second -– after a March add-on of $1.1 million brought in new investors Greycroft. The amount of the firm’s funding was first reported in Mass High Tech.
CEO John Roland declined to specify the exact amount of this add-on, beyond saying it is over $3 million. The company will do “several million” in revenue in 2009, and should triple that amount in 2010, passing the $10 million annual revenue mark some time next year, he said.
Accordingly, Extreme Reach is hiring: the 20-person startup expects to double in size in six to eight months. The company is nearly cash-flow positive, and would pass the break-even point this August, except for its aggressive hiring schedule, Roland said.
For the time being, most of Extreme Reach’s revenues come from traditional television advertising customers, he said. “Our strategy is to gain as much market share as possible in TV,” Roland said. “As online grows, you’re just migrating those customers over to the web.”
He attributed a large share of the company’s revenue growth to the launch earlier this year of an online social network of advertising traffic managers, which he said has enabled the company’s customer base to grow virally.
Extreme Reach was founded in the first quarter of 2008 by four former executives of FastChannel Inc. (Nasdaq: DGIT). Both companies deliver video content for TV, cable and online ad networks.
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