Local Tech Wire

CARY, N.C. – , a startup focused on advertising technology, has secured its first institutional investment from high-profile Silicon Valley venture capital firm Trinity Ventures.

Trinity, which has some $1 billion under management and focuses on early-stage investments, invested $3 million in MaxPoint.

MaxPoint, which launched in 2007, has developed what it calls “Digital Zip” technology that it says marketers to target potential customers in local neighborhoods. The company says the funding will be used for expansion.

According to MaxPoint, its technology helps customers increase in-store sales.

"Research has shown that over one quarter of online display ads are currently delivered outside the radius of a local store location. This means that national brands and retailers are wasting a large portion of their online advertising budgets, as these impressions are not driving in-store sales," said Joe Epperson, co-founder and chief executive officer of MaxPoint, in a statement.

"By introducing increased geographic and data set precision into the ad targeting process, we can deliver neighborhood-level targeting on a national scale, empowering brand marketers to focus their ad spend on their prime target consumers living within the radius of the store,” he added.

Digital Zip divides the U.S. into 34,000 neihborhoods, each with some 3,400 households.

The company’s proprietary technology utilizes point-of-sale data from some 65,000 publicly available sources then identifies what it believes is the best neighborhoods for its customers to advertise their products.

Gus Tai, general manager with Trinity, joined the MaxPoint board as part of the deal.

"Today, buying online advertising is a broken promise for retailers and brand marketers who are used to tracking advertising spends against true offline purchases," Tai said in a statement.

"We believe that MaxPoint has the technology, the passion and the management team to deliver the information that retailers and brand marketers are craving – how online advertising drives offline purchases,” he added. “This is not accomplished with impressions, clicks or ‘virality,’ but actual dollars. We believe that the real market opportunity isn’t just optimizing online advertising; it’s optimizing the entire advertising industry, including all the offline advertising, from FSIs, fliers and television advertising, which will eventually move online."

Trinity focuses on digital media, Internet services, the mobile sector, security and software.

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