Content compensation platform for premium digital publishers Sourcepoint announced it has closed a $16 million round in Series B funding led by new investor Northzone. While the company launched in June 2015, to date it was able to raise $26 million with support from Spark Capital, Foundry Group, Accel Partners, and Greycroft Partners.
Pär-Jörgen Pärson, General Partner at Northzone led the investment and will also join Sourcepoint’s Board of Directors. Pärson, who serves on the board of successful global digital businesses including Spotify, commented: “We are delighted to support Sourcepoint as it continues to innovate within the online publishing industry, providing solutions to revolutionize an individual’s experience of online content consumption. We are particularly excited about their work in creating subscription offerings for the digital content environment as it is no longer assumed that audiences must pay for content with their eyeballs by viewing ads.”
Sourcepoint commented that money from the Series B will go on further development of the company, aiming to create a more balanced and sustainable media ecosystem. In particular, Sourcepoint aims to continue expansion across Europe, giving publishers in the region the ability to work in partnership with their audiences by offering a flexible range of transparent compensation choices.
“This second round of funding is critical to Sourcepoint’s next phase of growth; as the industry moves from compensation awareness – brought about in part by the increasing understanding of ad block usage – to compensation consent, our aim is to deliver the best compensation experience for publishers and consumers. By providing a choice of alternative revenue models, including subscription-based models, we want to empower publishers to proactively engage with audiences.” – commenting Sourcepoint’s CEO Ben Barokas “We’re entering an interesting period for the digital media and advertising industry — with the European GDPR (General Data Protection Regulations) due to come into force in 2018, data compliance, open communications, and transparency are top of mind for publishers. It will soon be required to have conversations with audiences about how and why their data is used; not only will that clarify how an individual’s data is used, it also provides a key moment for publishers to underline the value exchange of how content is traditionally funded and engage with audiences on choices around content compensation.”