Reach Local Raises Big Funding

It was widely reported the smart folks over at Reach Local raised a significant amount of additional funding… A big and tasty $55 Million! Both TechCrunch and Greg Sterling have more analysis. My initial thoughts are that this seriously adds new validation to SEM for the local space and that there appears to be a gap in the marker in Europe in this space (SEM for SMBs). In the UK there are efforts by all the IYPs (Yell, BT, Thomson, online pure play Touch Local etc) to 0ffer SEM for SMBs, but none has grabbed any real headlines – yet. There are no stand alone SEM players in the small and medium business space (ie, that don’t also run an online directory site and/or off-line print product) of note. However, the agency SEM space in the UK is arguably one of the most dynamic and competitive in the world.

Why is there a gap in Europe in the SEM space for SMBs? I am a missing something or some companies on my radar? Is this an serious opportunity for other players or a newco or for a smart VC/private equity fund? Or is Europe going to be a tough nut to crack in terms of SEM for small businesses?