US-based market research company System1 spun out podcasting company HowStuffWorks yesterday with a $15m series A round led by merchant bank Raine Group.
The company has not named any additional investors.
HowStuffWorks operates a podcast network that currently includes 14 shows, which have amassed a combined one billion downloads to date.
The money will go towards talent recruitment and content creation, both in the form of podcasts and other, unspecified mediums across a range of verticals, including history, science, lifestyle and comedy. The company also hopes to develop new technologies to further advance the industry.
Conal Byrne, former general manager of HowStuffWorks, will rejoin the company as president.
Michael Blend, president and co-founder of System1, said: “HowStuffWorks has always been a leader in the podcasting industry and has amassed a fiercely loyal and engaged fan base.
“We have seen first-hand their rapid growth since our acquisition of the company and are excited to have Raine onboard to help accelerate the next stage of growth.”
Pete Amaro, vice-president at Raine Group, said: “We are seeing an inflection point in podcasting as accelerating consumer adoption and performance for advertisers continues to drive the industry’s overall market potential.
“Podcasting has finally proven itself as a viable space for investment, and we feel that HowStuffWorks’ expertise in creating authentic audio content will prove to be a solid foundation to drive future growth.
“We are excited about this strategic investment and are confident that HowStuffWorks will continue to be the top destination for podcasting.”