Kontera, an Israel startup (although their official headquarters is in San Francisco), is cashing in on the full-on bonanza around anything that calls itself an advertising network right now.

A year ago they raised $7 million from Sequoia Capital and Lehman Brothers. Tomorrow they’ll announce a second round of financing – $10.3 million more from Carmel Ventures, an Israeli venture firm. Sequoia and Lehman are also participating.

Kontera’s main product is in-text advertising. They’ll take popular keywords within the text of an article and put double lines below them to signify it’s an advertisement. Clicking on it generates cash for the publisher. A demo of the product is here. In the press release a customer claims to be seeing 10% click through rates from the ads.

Thanks to Roi Carthy for the tip.

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