Madrona Venture Group Leads $8 Million in Funding Round for MaxPoint Interactive

Based in Cary, North Carolina, MaxPoint Interactive is a company which has been leading an emerging market in the real-time neighborhood target online marketing for local retailers. The company announced on March 1, 2011, that it has raised $8 million in a funding round that was led by Madrona Venture Group. Other investors who participated in this funding round include the company’s existing investor, Trinity Ventures. Trinity Ventures has initially funded MaxPoint’s first quest for venture capital funding with $3 million last year.

MaxPoint works by delivering an effective data driven platform that allows for local businesses to market online within the neighborhood. The company’s platform works by gathering data from previous customers and potential customers who are interested in a vendor’s particular product. The data gathered from customers will indicate what they have purchased in the past and will allow for vendors to advertise and play to the interests of those customers who may buy a similar product.

What makes MaxPoint’s platform work so effectively is that is uses a proprietary system, known as Digital Zip, which is a digital zip code reader and works by using the customer’s zip code to determine the neighborhood that customer lives in. The zip codes determine many things. First, zip codes determine what state and metropolis a customer lives in. Furthermore, zip codes can also determine whether a customer is upper-class professional, middle class, or low income by determining the neighborhood they live in. This way MaxPoint’s clients can advertise accordingly to attend to the needs of an individual customer.

According to Joe Epperson, CEO and president of MaxPoint Interactive, since Trinity Ventures has funded our initial round of venture capital funding last fall, the company has experienced amazing growth with many satisfied clients. One of the key aspects of MaxPoint’s growth is that advertisers are constantly looking for an advertising platform that will reach more customers at one time. Furthermore, the internet has become a very affective advertising platform that has reached millions of people and has generated billions of dollars in sales.

Proceeds from this funding round will allow MaxPoint to accelerate its growth and strengthen its leadership in the market. To expand its growth, MaxPoint has also decided to change the location of its headquarters. The company has currently moved to New York City, where it can have a larger market and reach a larger number of clients. Furthermore, the company’s new offices are right in the heart of New York’s designer garment district, which is 505 Eighth Avenue. That neighborhood has also in recent times also become home to the vanguard of new tech companies.

Madrona Venture Group is a venture capital firm that “funds the passion behind the team.” Madrona works by allowing entrepreneurs to come to them and ask the firm to help them build their companies up from scratch. The firm also helps entrepreneurs develop solutions to attend to the marketing challenges that all new businesses face. Madrona Venture Group primarily invests in the consumer internet, commercial software and services, digital media advertising, and wireless industries. Some other companies in Madrona’s portfolio include All Treatment, Anamoto, Borrow or Steal, BuddyTV, Optify, PayScale, ThinkFire, AdReady, and others.

Based in Menlo Park, California, Trinity Ventures is an early stage venture capital firm that primarily invests in the internet, software, and tech industries. The firm has been investing in passionate entrepreneurs for over two decades and have invested in passionate executive teams who have build companies that have come from startups to name brands. Other companies in Trinity’s portfolio include 21 Vianet, 24/7 Real Media, Affinity Labs, Aruba Wireless Networks, Aryaka, Badgeville, Bill Shrink, Care.com, and others.