With the number of people using email globally approaching 5 billion, newsletters delivered regularly into people’s inboxes continue to look like a sticky way of getting attention for whatever it is that you’re writing. Now, in a signal of the popularity of the medium, one of the startups building a platform for creating and distributing newsletters is announcing some funding. New York-based beehiiv has raised $33 million, funding that it will be using to expand its business as well as the technical capabilities of its platform.
Series B Funding Led by NEA
NEA is leading this Series B with Sapphire Sport and previous backer Lightspeed Venture Partners also participating. The startup is not disclosing its valuation with this round but it has now raised $46.5 million. The money is coming on the heels of some significant growth.
Significant Growth and Expansion Plans
When we covered beehiiv’s $12.5 million Series A in June 2023 (a round led by Lightspeed), the company had 7,000 customers and was processing over 100 million emails per month. Today, that number has grown to 50,000 customers and over 2 billion emails processed per month.
With this new funding, beehiiv plans to continue to expand its platform, adding more features and functionality to help creators connect with their audiences through email. The company also plans to invest in its customer support team, ensuring that it can provide top-notch service to its growing user base.
Competitive Advantage
behiiv’s competitive advantage lies in its ability to provide a seamless experience for both creators and subscribers. Its platform is designed to be easy to use, with a simple drag-and-drop editor that allows users to create beautiful, responsive emails without needing any coding knowledge.
Additionally, beehiiv offers advanced features such as email automation, segmentation, and analytics, making it an attractive option for businesses looking to take their email marketing to the next level. With its strong focus on customer support and user experience, beehiiv is poised to become a leader in the newsletter platform space.
Market Opportunity
The market opportunity for beehiiv is vast, with billions of people using email every day. The company’s focus on creating a seamless experience for both creators and subscribers positions it well to capitalize on this opportunity.
"Email is one of the most enduring digital channels, but there’s immense untapped potential for publishers to grow and monetize newsletter audiences," said Danielle Lay, partner at NEA. "We believe Tyler and his team are pioneers in this space and true customer-centric builders. We’re thrilled to partner with them to establish beehiiv as the leading email platform for creators and advertisers alike."
Future of Email Marketing
The future of email marketing looks bright, with more and more businesses recognizing its importance in their overall marketing strategy. With beehiiv’s innovative platform and strong focus on customer support, it is well-positioned to become a leader in this space.
As the digital landscape continues to evolve, one thing is certain: email will remain a crucial channel for businesses looking to connect with their audiences. With beehiiv at the forefront of this space, we can expect big things from this innovative startup.