Raises $12 Mil. in Funding

NEW YORK said it has closed a $12.4 million round of venture capital financing, which it plans to use to expand its Web destination for small-business information.

The San Francisco-based company closed the Series C funding with backing from Sutter Hill Ventures, VantagePoint Venture Partners and Reed Elsevier Ventures.’s CEO, Peter Horan, helmed, and the company aims to take a similar approach to small-business information, mixing editorial content, blogging and user-generated content. Like About, the site relies for a large chunk of its traffic from search engines like Google. According to Horan, 80 percent of site traffic comes in through search engines, either via paid or non-paid links.

“Search is ultimately the game changer,” he said. “What we’ve had success with is using search as the front door to the site.”

Since he joined in July, the site’s traffic has increased from 500,000 visitors per month to 1.7 million, Horan said.

The site has linked up with BusinessWeek to sell its display advertising, and it relies on Google’s AdSense and other paid listings networks for direct response placements.