Piano Raises $88M to Enhance Publisher Tools - LinkedIn Invests
Publishers Secure Funding to Enhance Audience Engagement
As publishing companies navigate potential challenges – such as the rise of platforms like Substack attracting writers, or Clubhouse fostering news dissemination through audio conversations – a startup focused on bolstering their tools and audience reach has announced a new funding round.
Piano Secures $88 Million in Growth Funding
Piano, a provider of analytics and subscription services for publishers, has successfully closed an $88 million funding round. These funds will be allocated to further development of its existing technology and exploration of new avenues for connecting with online audiences.
This investment follows a period of substantial growth for Piano. The company currently serves approximately 1,000 clients, including prominent organizations like CNBC, The Wall Street Journal, NBC Sports, Insider, The Economist, Gannett, Le Parisien, Nielsen, MIT Technology Review, The Telegraph, South China Morning Post, and TechCrunch. Revenues have increased by 400% since 2019.
LinkedIn Joins Piano’s Investor Base
A noteworthy addition to Piano’s investor group is LinkedIn, the professional networking platform owned by Microsoft. This participation in the Series C funding round, led by Updata Partners, suggests potential areas for future development. Rittenhouse Ventures, based in Philadelphia, also contributed to this round.
While Piano has not disclosed its valuation, it is currently operating with an annual run rate of $75 million and has raised over $134 million in total funding.
Potential Synergies with LinkedIn
Trevor Kaufman, CEO of Piano, refrained from detailing specific collaborations with LinkedIn. However, LinkedIn’s historically limited use of data from its 740 million user profiles presents intriguing possibilities.
Potential applications include functionalities similar to Facebook and Google logins, identity layers for commenting on articles, or a centralized login management system linked to LinkedIn profiles. This could streamline access to subscribed content for users. LinkedIn’s untapped potential could be unlocked with Piano’s assistance.
Scott Roberts, VP and Head of Business Development at LinkedIn, stated, “Members are increasingly turning to LinkedIn to stay informed on the news and views that shape their respective industries – critical to this is the work we do with trusted publishers and journalists. The opportunity to collaborate with Piano to help unlock more value for publisher content on LinkedIn makes it a natural strategic investment opportunity.”
Shifting Reading Habits and the Rise of Digital Publishing
The past year has seen a significant increase in indoor activities, including reading, particularly shorter formats like periodicals. This shift has contributed to the emergence and success of models like Substack, where writers seek alternative ways to connect with readers. Simultaneously, publishers are focusing on cost conservation and strategic adjustments.
Piano’s Approach: Empowering Existing Content
Piano’s success is particularly noteworthy as it primarily focuses on enhancing publishers’ existing content production rather than reinventing it. The company has effectively capitalized on evolving sentiments within the publishing industry.
Paywalls and subscriptions, once viewed as potential barriers to traffic and advertising revenue, are now becoming increasingly common across a wider range of publications. This change in perception has benefited Piano, according to Kaufman.
Advanced Analytics and Subscription Management
Piano’s tools offer more than just basic subscription management. They provide sophisticated analytics that offer insights into content consumption patterns. This data can be used to refine subscription tiers and predict subscriber likelihood (further details can be found in this Nieman Lab article).
Expanding into Newsletter Solutions
Piano is also expanding its product offerings to include tools for publishers to develop and monetize their own newsletter businesses. This differs from the individual-focused approach of platforms like Substack.
Kaufman expressed strong reservations about Substack, stating, “I can’t imagine a more damaging entity for journalism than Substack. I think it’s gotten a tremendous amount of attention from writers because it is a fantasy come true for journalists, this idea that you can make $500k a year for writing on occasion. But nothing can be farther from the truth.” He believes the model is unsustainable due to excessive venture funding.
The Future of Digital Publishing
The long-term trajectory of the publishing industry remains uncertain, but Piano’s growth suggests continued opportunities for innovation and adaptation.
Strategic Acquisitions and Platform Integration
The company is also exploring potential mergers and acquisitions to address the fragmented landscape of audience development, analytics, and measurement. In March, Piano acquired AT Internet, a French company, to enhance its data analytics capabilities across various sources, including traffic, advertising, subscriptions, and engagement.
Jon Seeber, general partner at Updata Partners and a member of Piano’s board, commented, “Piano’s recent growth has been outstanding, and we continue to be impressed by the expanding set of capabilities they bring to both media companies and brands looking to drive more revenue from their audiences. They now have a true end-to-end platform that can power all aspects of the customer journey, allowing their clients to incorporate only the highest-quality data from across touchpoints to create the best experiences for users.”
