New York–startup Signpost says today it closed a $3.75 million Series A funding round led by Spark Capital. Signpost, an advertising platform that helps small merchants get their deals published online, previously raised more than $1 million. Its backers include Google Ventures and angel investors.
Signpost isn’t just another Groupon. The company serves as a marketing middleman between small retailers and more than 1,200 Web publishers such as Yellow Pages, AOL, and Patch. Retailers pay Signpost about $99 a month for the service.
Stuart Wall, Signpost’s CEO and founder, says the new funding will help his company scale up its business model. He expects the company to reach profitability under this funding round. It also gave Signpost the resources to hire Christopher DePatria, senior director of sales for AOL Local, to lead its sales force as vice president of revenue. Prior to AOL Local, DePatria was area sales manager for ad network Yodle in New York and was director of sales at Yahoo.
In addition to hiring DePatria, on Monday Signpost moved into its new home: a 4,000-square-foot office within a former chocolate factory in the SoHo neighborhood. Signpost previously occupied an office with less than 1,000 square feet of space, according to Wall. “This is our first real office,” he says.
The new digs are expected to fill in fast. The company plans to hire some 25 new sales and marketing personnel.
