US-based online vertical media network Mode Media has raised $30m in funding from media group Hubert Burda Media, TechCrunch has reported.
Founded in 2004 as Glam Media, the company originally only operated its own lifestyle websites as well as a network of lifestyle blogs.
Glam renamed itself Mode Media in May 2014 when it raised $15m from undisclosed investors, at the same time diversifying to include original video content and changing focus to a broader readership beyond the site’s initial focus on women.
Mode extended its offering further in April this year with a mobile app called Mode Stories, which enables users to create a personalised feed based on their tastes. The company handles all three aspects of its platform – publishing, advertising and distribution – itself.
Hubert Burda’s investment will enable Mode to establish partnerships with other media companies. Mode’s network of websites and blogs is currently run by professional, but small-scale writers rather than authored by large publishers.
Hubert Burda previously participated in a $25m round for Glam Media in 2013 alongside venture capital firm Keating Capital in the run-up to a mooted initial public offering, though its IPO plans appear to have been abandoned for now.
Mode has now secured a total of $186m in equity funding and obtained at least $20m in debt financing, which it received in 2008. It will use part of the latest cash injection to pay off its debt.
The company’s other investors include Mizuho Capital, a venture capital firm backed by financial services provider Mizuho Bank; GLG Partners, a subsidiary of investment management firm Man Group; Silicon Valley Bank; Hercules Technology Growth Capital; DAG Ventures; Draper Fisher Jurvetson; Walden Venture Capital; Accel Partners; Aeris Capital and Information Capital.