Site Plans to Use Money to Hire More Staff, Finance U.K. Launch
Business Insider raised an additional $12 million in funding from investors including Amazon.com Inc. Chief Executive Jeff Bezos, the online news site said.
The site plans to use the money for growth efforts including hiring more journalists and photographers as well as to help finance a launch into the U.K., Business Insider Chief Executive Henry Blodget said. The money will also go to expanding the site's subscription research and advertising staff.
Business Insider has emerged as a popular source for online business and general interest news, spanning topics from Warren Buffett to the Oscars. In January, Business Insider ranked as the fourth largest business news site, drawing a total of 25.4 million unique visitors on desktop and mobile devices, according to comScore. That is more than AOL Inc.'s Money and Finance and Bloomberg L.P.'s news site.
Business Insider earned just under $20 million in total revenue last year, an 80% increase from a year earlier, according to a person familiar with the company. And while the company turned a profit in the fourth quarter, it doesn't expect to be profitable this year because of the further investments it is making to expand the business, the person said.
Mr. Bezos' investment firm, Bezos Expeditions, was the lead investor in the latest funding round, according to a person familiar with the company. Other investors in the latest round include RRE Ventures, Institutional Venture Partners and publishing executives Jim Friedlich and Gordon Crovitz. Those investors, like Mr. Bezos, have previously provided funding to Business Insider.
Representatives from Amazon, Bezos Expeditions, RRE and Institutional Venture Partners weren't immediately available for comment. Mr. Friedlich and Mr. Crovitz confirmed their investment.
Mr. Blodget said the fundraising was a sign that the news site isn't looking to be acquired in the immediate future....MORE
