NewsCred, a content marketing software developer, has raised $42 million in growth equity funding led by FTV Capital along with existing investors FirstMark Capital, InterWest Partners and Mayfield Fund. As part of the investment, a partner at FTV Capital has joined NewsCred’s board of directors.
Founded in 2008, NewsCred kick started as a company that allowed reader to rate the credibility of every online publication and story. Later it changed to help the bigger brands find content for their marketing efforts by providing license to the articles from big-name publishers and then by connecting those brands with freelance writers. It offers world big brands like Pepsi, Visa, Dell, ConAgra, Hewlett-Packard with the solutions in content creation, managing marketing strategies, cross-channel publishing and means to measure the reach. With the new rules of marketing, it helps marketers share their stories to the world. It serves customers in more than 70 countries with a team of 200 people employed in seven global offices of the company.
NewCred’s co-founder and CEO, Shafqat Islam has stated concern that the field of content marketing technology has been oversaturated, quoting $100 million in VC-backed deals in one-quarter of 2014 alone. “Plenty of money continues to pour into the space during the last 12 months. We have raised the most money are the biggest company in the space in terms of mass. However, given macroeconomic conditions, I do think we’ll start to see a slowdown in industry investment. It may become more difficult for smaller companies to raise additional capital,” said Islam.
With the news funds, NewsCred plans to invest in Research & Development, evaluate acquisition targets and widen its footprints in Audience Insights platform, like a newsletter sign up or form fill. It also plans to expand the software to become a tool for planning all of a brand’s marketing efforts, including TV advertising. Though there are many software available in the market, Islam claims their software is unique and has a competitive edge that every marketing channel requires content as it fuels.
“The marketing landscape is converging and content is at the core. Quality content is crucial for building brands and driving sales. Today, customers engage with about a dozen items of content before making a purchase, NewsCred provides the best solution and has already taken great strides at redefining how the modern marketer can successfully navigate the complexities in this rapidly evolving space. In NewsCred, we see not only a passionate and sophisticated management team, but also an enterprise solution that the market absolutely needs,” said Liron Gitiq, Partner at FTV Capital.