NewsCred raises £15m to expand content platform

 

NewsCred, a marketing technology firm that creates and
licenses editorial content for businesses, was today valued at an estimated
£120 million after it raised £15 million to expand in London.

Silicon Valley investors Interwest Partners are behind the latest round of funding which will see New York-based NewsCred hire around a dozen staff in London for a European expansion drive this year.

Chief executive Shafqat Islam said demand was soaring from clients such as Procter & Gamble, Pepsi UK and Visa as they look at new ways beyond advertising to communicate directly with consumers.

He claimed big name-brands “are now diverting major advertising spend towards news publishing and branded content” to appear on their own websites and social media — a trend dubbed content marketing.

“The reason why brands are spending money on content is they have built up massive audiences on a variety of marketing channels where they have one-to-one relationships [with consumers],” explained Islam, referring to the rise of Facebook, Twitter and YouTube – sites on which brands can have millions of followers.

“All of these channels give them access to audiences that they didn’t have before — 50 years ago, 20 years ago, even 10 years ago. But they need fuel to put into these channels.”

He went on: “If you take a drinks company, they’re great at creating fizzy drinks, but they’re not so great at creating highly engaging and compelling content and that’s where we come in.”

Clients use News Cred to commission original editorial content and to licence it from over 4,500 publishers including the BBC, The Economist, The Independent and many others worldwide.

“Our mission is to provide access and licence every piece of quality journalism in the world,” said Islam, who maintained News Cred does “no scraping” of content from third-party websites without permission.

News Cred pays publishers a monthly fee, based on the amount of content that it licenses to clients. The company also commissions original articles and other material – mostly from freelancers, who receive “the entire fee” as NewsCred makes better margins from licensing its software alongside the content to clients. News Cred pays as much as $1000 for long articles.

“We believe it’s important to fund journalism and drive new revenues,” said Islam, who explained syndicating editorial content was good for publishers as revenue falls straight to the bottom line because there is little cost involved.

Islam claimed NewsCred’s customer base tripled and revenue increased 400 per cent last year.

The seven-year-old company is not profitable as it continues to reinvest. He would not reveal what valuation investors have put on News Cred.

Start your day with The Independent, sign up for daily news emails
ebooks
ebooksAn introduction to the ground rules of British democracy
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Mortgage Advisor - OTE £95,000

£40000 - £95000 per annum: Recruitment Genius: This is an exciting opportunity...

SThree: Trainee Recruitment Consultant

competitive: SThree: Are you passionate about sales?Do you have a keen interes...

Recruitment Genius: Loan Adviser - OTE £30,000

£17000 - £30000 per annum: Recruitment Genius: This is an exciting opportunity...

Recruitment Genius: Sales Assistant / Buyer

£15000 - £17000 per annum: Recruitment Genius: This company offers a range of ...

Day In a Page

Greece debt crisis: EU 'family' needs to forgive rather than punish an impoverished state

EU 'family' needs to forgive rather than punish an impoverished state

An outbreak of malaria in Greece four years ago helps us understand the crisis, says Robert Fisk
Gaza, a year on from Operation Protective Edge: The traumatised kibbutz on Israel's front line, still recovering from last summer's war with Hamas

Gaza, a year on from Operation Protective Edge

The traumatised kibbutz on Israel's front line, still recovering from last summer's war with Hamas
How to survive electrical storms: What are the chances of being hit by lightning?

Heavy weather

What are the chances of being hit by lightning?
World Bodypainting Festival 2015: Bizarre and brilliant photos celebrate 'the body as art'

World Bodypainting Festival 2015

Bizarre and brilliant photos celebrate 'the body as art'
alt-j: A private jet, a Mercury Prize and Latitude headliners

Don't call us nerds

Craig Mclean meets alt-j - the math-folk act who are flying high
How to find gold: The Californian badlands, digging out crevasses and sifting sludge

How to find gold

Steve Boggan finds himself in the Californian badlands, digging out crevasses and sifting sludge
Singing accents: From Herman's Hermits and David Bowie to Alesha Dixon

Not born in the USA

Lay off Alesha Dixon: songs sound better in US accents, even our national anthem
10 best balsamic vinegars

10 best balsamic vinegars

Drizzle it over salad, enjoy it with ciabatta, marinate vegetables, or use it to add depth to a sauce - this versatile staple is a cook's best friend
Wimbledon 2015: Brief glimpses of the old Venus but Williams sisters' epic wars belong to history

Brief glimpses of the old Venus but Williams sisters' epic wars belong to history

Serena dispatched her elder sister 6-4, 6-3 in eight minutes more than an hour
Greece says 'No': A night of huge celebrations in Athens as voters decisively back Tsipras and his anti-austerity stance in historic referendum

Greece referendum

Greeks say 'No' to austerity and plunge Europe into crisis
Ten years after the 7/7 terror attacks, is Britain an altered state?

7/7 bombings anniversary

Ten years after the terror attacks, is Britain an altered state?
Beautiful evening dresses are some of the loveliest Donatella has created

Versace haute couture review

Beautiful evening dresses are some of the loveliest Donatella has ever created
No hope and no jobs, so Gaza's young risk their lives, climb the fence and run for it

No hope and no jobs in Gaza

So the young risk their lives and run for it
Fashion apps: Retailers roll together shopping and social networking for mobile customers

Fashion apps

Retailers roll together shopping and social networking for mobile customers
The Greek referendum exposes a gaping hole at the heart of the European Union – its distinct lack of any genuine popular legitimacy

Gaping hole at the heart of the European Union

Treatment of Greece has shown up a lack of genuine legitimacy