GigaOM Raises $6 Million in Round Led By Reed Elsevier
Capital will be used to expand research business, staff and events.
GigaOM, a media company targeting the tech space, has secured a $6 million round of funding led by Reed Elsevier’s investment group Reed Elsevier Ventures. Existing venture partners Alloy Ventures and True Ventures also participated in the round.
According to the company, the capital will be used to expand its subscription-based research business, hire more analysts and boost its stable of live events.
The company began diversifying its product offerings three years ago, particularly through the introduction of events and its research service GigaOM Pro, a subscription-based market research platform.
"In 2008, right after my heart attack, I told [Paul Walborsky, CEO] and our board a very simple thing – this company cannot rely on one person, one revenue stream and one business," writes GigaOM founder Om Malik in a blog post. "Our focus as a digital information company shifted from page views to engagement. And once we made the shift, we came up with the revenue models that match our core value proposition – content with high impact."
The company says it has "dozens" of Fortune 500 enterprise accounts for its Pro line of research and has been growing 30 percent annually across its sites, which now attract 4 million monthly uniques.
Reed Elsevier Ventures, which it says typically invests between $1 million and $10 million in media, Internet and technology companies, likes the revenue mix GigaOM offers. "We only invest in media companies with the potential to become hugely profitable global companies, and GigaOM-with its innovative subscription research business, growing readership, and strong conference business – is firmly in that camp," says Reed Elsevier Ventures general partner Kevin Brown in a statement.
Malik says the company will also bolster its editorial coverage, expanding to the East Coast and Europe. Former Guardian tech writer Bobbie Johnson was hired to head up a London office. "We have demonstrated that paid content (not paywalls) can work, as long as you can provide value to your community. The community in return rewards us with attention – by reading our blog content and participating in it, attending our events and buying subscriptions for our premium information service. Now we are going to scale our operations – and that means working on delivering more value," he says.