Native video advertising company Sharethrough has raised $5 million in Series B funding from existing investors North Bridge Venture Partners and Floodgate, the company announced today.

With the additional funds, Sharethrough plans to promote its Sponsored Video Platform, which is expected to generate $40 million in revenue in 2013. The company’s revenue has grown 87 percent in the last year.

Sharethrough has also named former Auditude CRO Mike Gaffney as its new chief revenue officer, and former Federated Media SVP of operation James Navin as its new VP of strategic operations.

Gaffney was employee number 20 at Salesforce.com.  Two of his previous employers were acquired: Right Media, a digital advertising exchange, by Yahoo! in 2007 and Auditude, a video ad platform, by Adobe in 2011.

Navin rose through the ranks at Federated Media from VP of product management to VP of corporate and business development and finally SVP of operations. Prior to that, he led the project management efforts at Yipes, an enterprise network service provider.

Founder Dan Greenberg was an original member of the “Facebook Class” of 2007, a group of 75 Stanford students who pioneered the “lean startup” model of developing products quickly and fixing them based on feedback from early adopters. In 10 weeks, the students had amassed 16 million users for their apps and walked away with a combined $1 million in advertising revenue.

Dan Greenberg and his colleague Robert Fan built an app for sending other Facebook users hugs, eventually building 70 similar apps and earning nearly $100,000 a month through ads. Greenberg ultimately dropped out of school and formed the company that would become Sharethrough.

Today, the company distributes video ads for half of the top 100 brands and more than 85 percent of the leading U.S. media agencies. Sharethrough reports a 55 percent increase in native video campaign size in the last year.

Fan continues to serve as Sharethrough’s chief technology officer. Greenberg, the company’s CEO, was named an Ad Age Media Maven in 2010 and made Forbes’ 30 Under 30 list in 2011.

The company launched Sharethrough Sponsored Videos in September 2012. News publishers including Forbes and social content publishers including The Awl have used the platform to create advertisements that blend in with the content on their sites and that don’t interrupt the user. More than 105 million people in the U.S. have seen the ads, according to comScore.

Sharethrough raised $1 million in seed funding in 2008 and $5 million in Series A funding in 2010. This latest round brings the total to $11 million.