Pioneer of mobile marketing continues to lead the sector - Flytxt, the leader in technology and expertise for mobile marketing and interactivity, today announced that it has closed a second fundraising round of £2m. The company, which has been cash flow positive for the last 12 months, will use the second round of funds for product development, investment in emerging technologies and to support its aggressive hiring and development strategy over the next six months.

The lead investor is Herald Ventures, a VC fund focusing on communications, media and technology businesses. Herald invested £1.5m of the current round and existing investors made up the remaining £0.5m. Flytxt has continued to build on the success of its business over the last three years since its launch in October 2000, shortly after it closed its first round of seed investment from IVC of €2 million.

As one of the first movers worldwide in mobile marketing, Flytxt has played a critical role in defining the mobile marketing industry. Over the past three years, Flytxt has run ground-breaking campaigns with industry leading companies such as the EMAP, Coca-Cola, Cadbury's and the BBC. Mobile marketing continues to be one of the fastest growing business segments within the wireless Internet.

According to a recent report by US-based Forrester Research, over the next two years 50 per cent more companies will adopt mobile marketing and spending will double. Flytxt's technology empowers media owners, marketers and agencies, with the services and technology to design, execute and analyse mobile marketing and interactivity programmes.

Flytxt has run over 1,000 interactive mobile acquisition and retention programs on behalf of over 180 blue chip clients in industries spanning media, consumer packaged goods, retail, entertainment and charity. The business has achieved an unrivalled track record for quality, reliability and innovation in the mobile technology space. "This is a very exciting stage in the company's development. The last three years were about survival and achieving profitability.

The next three will see significant growth for our business. The team have generated real return on investment from the initial seed funding, and intend to the same with this next round" said Pamir Gelenbe, co-founder and Director of Corporate Business Development. "The mobile marketing sector is really beginning to accelerate, with new applications of the technology still being developed and many more to come. Flytxt are clear market leaders, and we are very pleased to have the opportunity to work with a team of this calibre," said Tom Hayward, Fund Manager, Herald Ventures.