Tapjoy (formerly Offerpal) has raised a $21 million round of new funding led by Rho Ventures, with D.E. Shaw Ventures, InterWest Partners, and North Bridge Venture Partners participating. Tapjoy plans to use the money to fund growth across emerging application ecosystems domestically and internationally, while also investing in application media licensing and incubation opportunities. As part of the deal, Rho Ventures managing partner Mark Leschly will join Tapjoy’s board of directors. This round brings the company’s total funding to $40 million.
“This is a very exciting time to be an application developer, with opportunities that span across platforms and regions. We are thrilled to support application entrepreneurs with our industry leading infrastructure, monetization and distribution IP and services,” said Mihir Shah, President and CEO of Tapjoy, in a press statement. “We also look forward to continuing our strong and dedicated working relationships with Apple, Facebook, Google, Yahoo and the other social and mobile platforms we invest in and support.”
The funding is part of the company’s ongoing transformation, as it switches focus from ad offer monetization on Facebook to a more diversified business that also includes cost-per-install advertising, mobile ad offer monetization, and app discovery. To some extent, the transition was forced when Facebook opted to partner with TrialPay and Peanut Labs for ad offer monetization of the Facebook Credits virtual currency instead of Offerpal. This forced the company to lay off staffers and made a significant chunk of the Facebook ad offer market effectively inaccessible.
Offerpal’s formal name change to Tapjoy, a company Offerpal acquired last year, came a few months later. Tapjoy manages products including Social K-Factor (formerly Socialkast) that helps drive viral discovery of new social games and the social game cross-promotion bar AppStrip. Tapjoy says its 5000 monetization and discovery partners include GameDuell, Tapulous, Glu Mobile, Pinger, Playdom, Kayak, Barnes & Noble, MTV, Bing, Fandango, Groupon, and Intuit.
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