Got Funds? Spongecell Absorbs Cash From Schmidt and Pallotta

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ADOTAS – Sometimes it’s not the size of the investment, but the people opening up their wallets. Google Executive Chairman Eric Schmidt and Raptor Group Chairman and Managing Director Jim Pallotta led a round of funding for dynamic display firm Spongecell that included participation from Pittsburgh Steelers Board Member Brian Rooney and existing investor SilverHaze Partners. Though the amount raised was undisclosed, various sources say it was a little less than $1 million.

Spongecell’s technology give static banners rich media capabilities, such as animation, video, inventory, maps, coupons and social media hookups. Back in October, Spongecell Cofounder and President Ben Kartzman shared a case study with Adotas that examined the effects of enabling auto dealers to show a wide variety of promotions and lead generation tools in a single display ad that took up no more space than a static banner.

Founded in 2006 by Carnegie Mellon computer science graduates, Spongecell previously raised capital from SilverHaze, Halo Venture Partners and the Pilot Group in 2007. The company’s total funding is estimated to be around $4 million.