Online lead gen firm Yodle has closed a $10 million third round funding led by JAFCO Ventures. Other backers included Draper Fisher Jurvetson Growth and existing investors Draper Fisher Jurvetson and Bessemer Venture Partners. The company raised a $12 million second round in Nov. 2007 and a $3.5 million first round the year before, giving it a total of $25.5 million in funding to date.

New York-based Yodle, which has mainly focused on the local ad market, will use the proceeds to promote product and technology development. It also plans to use the funds to expands its national sales effort, a definite challenge in this economy, though Yodel says it did pretty well last year. For example, it ended 2008 with 250 employees nationally – up from nine in 2006. Yodle also boasted that it has about 5,000 customers – up from 125 three years ago. It didn’t say how many of those additions were in 2007 and whether there was a slowing in its growth efforts in 2008, however. Yodle’s national push comes as realization grows that the local online ad engine has been slowing precipitously the last few months, along with general ad spending rates.

Still, lead gen is one category that’s expected to do a bit better this year, as it fell into some disfavor in 2008 following a few high-profile news stories about fraudulent marketing practices surrounding that kind of online ad activity. But as online marketers look to ramp up sales in a tough spending environment, lead gen promises a direct line to potential customers—something that advertisers become more desperate for as the economy grinds to a halt. Release

• Online Lead Generator Yodle Raises $12 Million Second Round