Gather.com, a news website run by freelancers has raised $2.4 million in funding. Every month, Gather.com freelancers write over 8,000 articles. They receive about 7 million visitors per month. The company plans to use the funding to create an on-demand platform for publishers in a model that is similar to Demand Media. Gather currently works with writers that submit content and share revenue based on pageviews and engagement.
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Jim Manzi Posts
Gather.com is a service focused on making new friends and forming new social circles. The company is based in Boston, Mass. and has announced that they have raised $5.3 million in funding from Allen & Co., American Public Media, Jim Manzi (former CEO of Lotus), Jack Connors (former CEO of Hill Holiday), Kevin McClatchy, Andrew Tobias, and the Gerace family.
Gather had increase sales of about 49% in the first quarter over the same period about a year ago. Gather raised VC funding because they needed additional capital to help fund operations. Based on the current run rate, the company expects to be profitable by early 2010.
This round of funding puts the company’s total at about $25 million. Most of the investors that participated in this round had participated in previous rounds as well.
[via NEVC Funding]