Soho-based Flavorpill is one of the pioneers of the email newsletter business: More than 600,000 subscribers in six cities have signed up for weekly updates on where to eat, drink, hobnob, etc. But while Daily Candy, Thrillist and other lifestyle newsletters have stuck to their knitting — the low-cost, email-only model — Flavorpill wants to branch out.
Next month the company plans on unveiling a new Web site that’s been 9 months in the making. Flavorpill also overhauled its site in 2006, but co-founder Sascha Lewis tells us that this revamp has much bigger ambitions: While the company’s current Web site is mostly used for newsletter sign-ups and archives, the new one is supposed to provide personalised feeds, video and all sorts of other Web 2.0 features.
Sascha tells us Flavorpill is on a tear: It has been profitable for several years, and revenue is projected to jump from $3 million to $4 million this year; he’s employing 22 people full-time and has another 30 freelancers, mostly on the editorial side. So this is a big bet for Flavorpill — if it works, it opens up new revenue streams – if it doesn’t, the company has plowed a lot of resources into an expansion gambit without a return.
One thing on Flavorpill’s side: Sascha and cofounder Mark Mangan bootstrapped the company, and only took on one $250,000 angel round a few years ago. So in a worst case scenario, they don’t have angry investors to answer to. We wish them well, and look forward to seeing the new site.