Mashable Closes $13.3 Million in Its First Ever Capital Raise to Expand Media-Tech Company for the Connected Generation; Investment Led by Updata Partners
New York, NY (PRWEB) January 06, 2014 -- This is the company’s first capital raised since its founding in 2005. The capital will go to bolster Mashable’s editorial operations, grow its global audience, develop new technology products, expand its BrandLab and advertising offerings, and open up a larger headquarters in New York City and offices in Los Angeles and London.
Additional investors who participated in the Series A round include New Markets Venture Partners; Social Starts; Michael and Kass Lazerow, serial entrepreneurs and co-founders of Buddy Media; Elio Leoni Sceti, CEO of Iglo Group and tech private investor; and David Jones, Global CEO of Havas and Founder of One Young World.
"Mashable thrives at the intersection of media and technology," said Pete Cashmore, Founder and CEO, Mashable. “What's exciting is that we are only just beginning to realize the potential we have to build a new kind of company, which is equal parts media and technology.”
Over the past year the company has grown significantly:
• Reaching a record of more than 34 million unique global readers in December (source: Adobe Marketing Cloud).
• Growing its social community to over 14 million followers across social networks; it is one of the top followed brands on Pinterest, LinkedIn, Vine and Google+.
• Increasing engagement; it was recently named as the most socially efficient publisher of original content with an average of more than 2,500 social interactions per article (source: Newswhip).
• Expanding its editorial depth and breadth with the addition of Jim Roberts, formerly of Reuters and The New York Times, as Chief Content Officer and Executive Editor.
• Bringing on Chief Revenue Officer Seth Rogin to expand the advertising team, and to elevate awareness of Mashable’s highly powerful advertising platforms.
• Achieving record revenue in 2013 with fourth quarter revenues up 50.6% year over year, fueled by rapid growth in advertising sales, particularly in the area of branded content, and by the introduction of new display products such as Mashable’s exclusive social amplification platform, Social Lift.
• Developing new capabilities through the expansion of the technology team to include data science and artificial intelligence to drive development of Mashable Velocity, Mashable's proprietary viral prediction platform, and other technology products.
• Furthering the company’s mission to spread ideas and innovation for social good through such initiatives as #GivingTuesday, G-Everyone, and its annual Social Good Summit; which included participation from 204 countries and territories, was translated into seven languages, and featured such voices as Al Gore, Samantha Power, U.S. Ambassador to the United States, Melinda Gates, co-chair, Bill and Melinda Gates Foundation and Malala Yousafzai, author and activist.
• Expanding staff with a current headcount of 120 people.
“I am proud that our team has grown Mashable into a competitive and profitable media company. It’s from this solid footing that we take our next step,” Cashmore said. “I’ve never been more confident in the stable foundation that we’ve set, nor more convinced of the need to build upon it. As the pace of technology grows ever quicker, so too does our need to make sense of it.”
“Mashable’s growth reflects the evolving nature of digital media, where the next generation of successful companies are creating strong editorial paired with smart technology, and a passionately engaged community,” said Jon Seeber, Partner at Updata Partners. “Mashable has a talented management team, a global brand, a highly desirable social audience and a culture built on innovation. We look forward to helping them build upon the success they have already achieved.”
“We will use the capital to grow our reach, technology capabilities, invest in video and new storytelling formats, grow the company’s BrandLab, which now engages with some of the world’s best brands, and work on new products that will be announced next year,” said Mike Kriak, Mashable’s Chief Operating Officer and Chief Financial Officer. “This means we’ll be increasing headcount by as much 50%, and we will move to a new headquarters in New York City to house our rapidly growing team, and be opening up new offices in Los Angeles and London.”
About Mashable:
Mashable is a leading source for news, information and resources for the Connected Generation. Mashable reports on the importance of digital innovation and how it empowers and inspires people around the world. Mashable’s record 34 million unique visitors worldwide and 14 million social media followers are one of the most influential and engaged online communities. Founded in 2005, Mashable is headquartered in New York City with an office in San Francisco.
About Updata Partners:
Updata Partners is a leading technology-focused growth equity firm with nearly $500 million of capital under management. Updata invests in high-growth technology-enabled services, software, and Internet companies with innovative intellectual property and market-leading solutions. Led by an investment team averaging more than 20 years of experience in the technology industry, Updata seeks investments where the combination of the firm’s financial backing and the operating expertise of its partners will accelerate growth.
Lexie Riegelhaupt, Mashable, +1 (646) 747-6793, [email protected]
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