Australian crowdsourcing platform Newzulu has just raised $11.5 million at a valuation of about $57.5 million.
Founded by Alexander Hartman and Peter Scarf the crowdsourced news distribution startup will use the latest round of funding to acquire Canadian media platform Filemobile for about $5.06 million in a deal that was struck last October.
The funding will also be used to expand Newzulu in US and European markets as well as launch its live streaming platform and invest in ongoing product development.
The ASX listed company said investments came from a number of media and institutional investors as well as directors and existing company shareholders.
“This $11.5 million capital raising is a great step forward for Newzulu and demonstrates the belief of investors in Newzulu’s business model,” Newzulu executive chairman Hartman said.
“We believe Newzulu has the ability over the next two years to build significant revenues through selling software platforms, editorial services like Newzulu Live and brand creative services globally.
“I am grateful to investors for their support of Newzulu and am confident we can successfully execute on our business plan, particularly over the next two years as we take Newzulu Live to market.”
The company has also appointed Karen Logan as its company secretary after Mark Pitts resigned after Newzulu’s AGM in January.
Newzulu was trading at $0.10 a share on the ASX this morning.