News Break Raises $115M: Local News App Funding

The widely-used news application, News Break, has announced the securing of $115 million in a new investment round.

According to a company press release, this funding elevates News Break to the status of “one of the first new unicorns of 2021,” though the company has chosen not to reveal its precise valuation.

Jeff Zheng, Founder and Chief Executive Officer, explained that upon launching the company in 2015, the intention was to set it apart from other news aggregation platforms by concentrating on local reporting and to “assist or strengthen these local content producers.”

It’s important to note that News Break features news stories comparable to those found on other news apps – including a dedicated section for coronavirus updates, and current headlines regarding the recent events at the U.S. Capitol – but it also prominently displays content tailored to the user’s specific geographic location.

“Technology is integrated into all facets of the company – in the ways we enable local publishers and journalists to create content more efficiently and connect with an online readership more effectively,” Zheng stated. “We utilize AI-powered tools to deliver relevant articles… We analyze location data and user interests to match them with appropriate content.”

The emphasis on local content may prove particularly beneficial considering the financial difficulties impacting the local news industry – as Zheng observed, there is “significant user demand” for local news but a “limited supply.” This strategy has already yielded positive results for News Break, with the app frequently reaching the number one position in the News category of the U.S. Apple App Store (it is currently ranked No. 4) and also achieving high rankings on Google Play. The company reports a current reach of 12 million daily active users.

Zheng indicated that News Break currently shares advertising revenue with publishers and anticipates increasing the financial benefits provided to them in the future: “Our aim is to return as much revenue as possible to the content creators.”

In response to concerns that publishers and journalists might be hesitant to depend heavily on a third-party platform for audience reach, Zheng asserted that News Break’s priorities differ significantly from those of major internet and social media companies.

“We are focused on local communities,” he said. “If local publishers are facing challenges, if newspapers continue to decline, then ultimately our business will also be affected.”

While Zheng formerly led Yahoo Labs in Beijing and served as the founding CEO of Chinese news startup Yidian Zixun – and the company maintains teams in Beijing and Shanghai – he stressed that News Break is a “U.S.-based high-tech company incorporated in Delaware, with headquarters in Mountain View,” employing a majority of its workforce within the United States and concentrating on the U.S. market. This clarification may become important as News Break expands, given the U.S. government’s ongoing efforts to prohibit certain Chinese companies.

News Break had previously secured $36 million in funding. This latest round was spearheaded by Francisco Partners, who will now have a representative on the News Break board. IDG Capital also participated in the investment.

Alan Ni, Principal at Francisco Partners, issued the following statement: