DigitalBeat

Yext, a startup trying to offer more effective advertising and analytics for local businesses, has raised $25 million in new funding.

The New York company launched its new service, Yext Calls, at the TechCrunch50 conference two weeks ago. The product is based on two ideas — that most local businesses would rather receive a customer phone call than a click on their website, and that business placing the ad should only pay for calls that might actually make them money. So when someone advertises with Yext, they get a listing at Yext.com, as well as YellowPages, Topix, and other sites, which directs potential customers to call a special number.

When someone calls that number, they’re connected with the business like normal, but the call is also recorded, analyzed and transcribed. Yext creates an email-style inbox where calls are categorized and searchable, making them much easier to track. And you only have to pay for calls that actually delivered what you wanted, such as an order for a car repair, not for random calls from telemarketers.

Yext got a lot of positive buzz at the TechCrunch conference, not just because people liked its ideas, but also because it says it’s already making $20 million in annual revenue.

The new funding was led by Institutional Venture Partners, with participation from existing backer Sutter Hill Ventures. Yext previously raised $3.5 million.

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Tags: co:yext, inv: Institutional Venture Partners, inv:sutter-hill-ventures