Breaking Media, a network of sites for professionals in the government, legal, fashion and energy markets, raised a $1.5 million round of funding, the company announced. The capital was provided by a group of new and existing investors.
This is the second round for the company, which raised $1.3 million in 2010.
Like most rounds of this nature, the money will be applied to growth initiatives—but CEO John Lerner says some of it will be earmarked for new market vertical expansion and acquisitions.
"We knew that after closing the MedCity deal, we wanted to raise capital to continue to grow our core business and look for other potential acquisitions," Lerner tells Folio:. "With our core business, we have been rebuilding our site template, growing our marketing services capabilities, developing a new CRM, adding new editorial resources (we announced three new hires today), and enhancing our audience development capabilities. These are all core to our business, and further investment in these areas will accelerate our growth moving forward."
There's been quite a bit of money raised by digital content companies lately—but there have been notable flameouts by some of those same brands. For his part, Lerner is less concerned with applying those funds to growing massive scale, but is rather focused on what might sound less intuitive for a digital media company—niche market penetration.
In a recent blog post on Folio:, Lerner explained his strategic outlook for Breaking Media, and how it contrasts with the Mashables and Business Insiders of the world:
"To do our job properly at Breaking Media, we must build vertical communities for each business audience we serve. In most cases, that means our editorial products are not for people outside of those industries: finance, law, healthcare, defense, energy, fashion and government. This may not seem as glamorous as reaching 100 million people per month, but our job is to develop vertical communities with the goal of 100-percent market penetration. In doing so and delivering that reach to our marketing partners, we are doing our job, which is glamorous enough for me."
Since launching in 2006, the company says it has grown to 5 million uniques across its network. The company is profitable and projected revenues for 2015 are close to $7 million.
The company also just announced three new additions to its editorial staff: Neil Versel as a reporter for MedCity News, Thornton McEnery as senior editor at Dealbreaker and Kathryn Rubino as editor at Above the Law.
The funding round comes on the heels of Breaking Media's acquisition of healthcare media company Medcity Media. That was the second acquisition for Breaking Media, which bought three sites from AOL in 2013.