News Break Raises $115M to Strengthen Local News Ecosystem
The hyperlocal news aggregation app News Break has secured $115 million in fresh funding, positioning itself as one of the first potential unicorns of 2021. While the company declined to disclose its exact valuation, this substantial investment underscores growing confidence in its unique approach to local news distribution.
A Differentiated Approach to News Aggregation
Founded in 2015 by CEO Jeff Zheng, News Break set out to distinguish itself from compe*****s by:
- Prioritizing local news content
- Empowering local journalists and publishers
- Leveraging AI for personalized content delivery
“Our mission has always been to bridge the gap between strong user demand for local news and the weak supply from traditional outlets,” Zheng explained in an exclusive statement.
Technology Driving Local News Innovation
News Break employs sophisticated AI tools to:
- Match users with relevant local content
- Create detailed location profiles
- Help publishers reach online audiences more effectively
Zheng emphasized: “Technology is interweaving with every aspect of our company—from content creation to distribution.”
Market Traction and User Growth
The app has demonstrated impressive market performance:
- Multiple #1 rankings in Apple’s U.S. App Store News category
- Current position at #4 in the News category
- Strong presence in Google Play rankings
- 12 million daily active users
Jeff Zheng, Founder and CEO of News Break
Publisher Partnerships and Revenue Sharing
News Break currently shares advertising revenue with content partners, with plans to expand these financial benefits. “We want to give as much money back to the creators as possible,” Zheng stated, addressing concerns about platform dependency.
Addressing Platform Skepticism
When questioned about publisher wariness of third-party platforms, Zheng responded:
“We are local-centric. If local publishers struggle, if newspapers diminish, then sooner or later we’re out of business. Our incentives align completely with local news organizations.”
Corporate Structure and Market Focus
Despite Zheng’s background with Yahoo Labs in Beijing and Chinese news startup Yidian Zixun, he clarified:
“News Break is a U.S. high-tech company incorporated in Delaware, headquartered in Mountain View, with most of our workforce in the United States focused on the U.S. market.”
Investment Details and Future Plans
The \(115 million Series C round was led by Francisco Partners, with participation from IDG Capital. This follows \)36 million in previous funding.
Alan Ni, Principal at Francisco Partners, commented:
“News Break’s multi-year success in local news first brought them to our attention. We’re impressed by their work to modernize local news distribution through machine learning and media expertise.”
The funding will support:
- Expansion into adjacent local verticals beyond news
- Further development of AI and machine learning capabilities
- Growth of the platform’s publisher network
As local news ecosystems face increasing challenges, News Break’s innovative approach and substantial new funding position it as a potential game-changer in how communities access and support local journalism.
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