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Appstack Raises $1.5M Seed For App Dev + SEM

March 28, 2012

AppStack has raised $1.5M in seed round from Google Ventures, Eric Schmidt’s Tomorrow Ventures, 500 Startups, Gary Vaynerchuk,Google’s Don Dodge, and Punchbowl founder Matt Douglas.

Appstack’s offer combines the development of mobile apps with search engine marketing so that companies can drive traffic to their apps. The product and pricing is for the long tail at $59.95 per month, which includes $40 in Adwords. Part of the platform is a simple CMS so that you can update deals, send text notifications, etc.

AppStack is led by CEO Steve Espinoza who previously founded local search startup Backyard, which helps consumers make faster buying decisions for things like manicures, happy hours, and lunch specials. It collected and normalized offline data to match deals. Investors there also included Eric Schmidt, Dave McClure, and Jason Calacanis. Backyard was acquired by PixelFish in 2011. AppStack is based in the SoCal town of Temecula.

For signs of success the company won Calacanis Launch event best of show, and it claims to be the biggest reseller of mobile Adwords for Google, although at just $1M per month for Adwords that’s not a lot for Google.

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