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Newsletter platform Beehiiv raises $33M

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Apr 30, 2024
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Illustration: Annelise Capossela/Axios

Newsletter platform Beehiiv has raised $33 million in Series B funding led by NEA, CEO Tyler Denk tells Axios.

Why it matters: The funding bolsters the startup's growth plans amid competition from Substack, Mailchimp, Campaign Monitor and Sailthru.

Catch up quick: The three co-founders — Denk, Benjamin Hargett and Jake Hurd — met at Morning Brew, the newsletter-focused media company now owned by Business Insider.

  • They launched Beehiiv in 2021 as a software platform to manage and monetize newsletters.
  • Beehiiv raised $4.2 million in seed funding in 2021 and a $12.5 million Series A led by Lightspeed Venture Partners in 2023.

Driving the news: When Beehiiv acquired tech platform Swapstack last year, Denk told Axios that his company did not have plans to raise more money and hoped to be self-sustaining.

  • Now, Denk says he pursued this funding round to hire top talent and invest more in customer acquisition.
  • "This is obviously a very competitive space," Denk says. "There are incumbents that are decades old and a newer wave of players. Building a company gets expensive when you hire really good talent, and there's just so much that we want to do and build."
  • Existing investors Lightspeed and Sapphire Sport also participated in the round.

By the numbers: About 70% of revenue comes from software service fees, Denk says. The company recently changed its pricing model based on client size. Revenue also comes from taking a cut of its ad network and of paid recommendations in its newsletter network.

  • Denk says Beehiiv's revenue run rate is about $1 million per month, and its 2024 goals are $22 million in revenue and to operate breakeven.
  • The platform has 20,000 active newsletters, sends more than 1 billion emails per month and has 65 full-time employees.

What's next: Denk says Beehiiv's growth historically has been word of mouth, partnerships and SEO. It plans to put the funding toward marketing and hiring more customer support, engineers and designers.

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