The startup known as Signpost, designed as a local advertising platform, has managed to gather up $3.75 million in funding from Spark Capital. This is on top of a previous round of funding that saw another $1.25 million trumped up for the new company.
This is allowing the firm to make a rapid expansion, with CEO Stuart Wall announcing the taking on of 25 new employees for its sales team over the next few months, more than doubling the overall size of the team. Signpost has also recently hired ex AOL employee Christoper Depatria, giving him the title of VP of revenue.
Signpost works as a local advertising merchant, selling space on web and mobile platforms. Mr Wall has said that the company has a great renewal rate, with some 93 per cent of customers resigning each month.
"There's a realisation that you might get a thousand customers from one of the daily deal sites, but probably less than a hundred of them ever come back. So that's not worth the investment," says Wall. "We're increasingly focused on platforms that reach a more targeted group of consumers, which means lower volume but higher quality," he said.
While it might consider itself better than daily deal companies like Groupon, Signpost does do a lot of work with companies during their slow periods, using advert placements to draw in customers when sales have slumped.