Open Road secures $11m investment

Open Road secures $11m investment

Digital publisher Open Road has secured a further $11m (£7m) in finance. The funding includes an $8m (£5.1) investment from private equity fund NewSpring Capital.

Open Road, which was started in 2010 by former HarperCollins worldwide c.e.o. Jane Friedman, has published more than 4,000 e-books from over 500 authors, including works from writers such as Alice Walker, Iris Murdoch and Michael Chabon.

Friedman said that though she felt the New York-based publisher had hit its stride, she wanted to take the business to the next level. She said: "There is still much to be done—with the goal in mind of helping authors reach more readers than ever before. We want Open Road to be the premier digital publishing and marketing company for many years to come, and we have many new ideas that we want to put into practice."

NewSpring Capital's dedicated technology and business services fund, NewSpring Growth Capital III put forwards $8m, alongside $3m (£1.9m) from existing backers Kohlberg Ventures, Azure Capital and Golden Seeds.

Friedman said the funding would help Open Road develop its technology platform, expand its business, scale up its international publishing and further acquisitions.

Mike DiPiano, managing general partner of NewSpring, who now joins Open Road’s board of directors, said: “There is huge disruption in the publishing industry as business models are rapidly evolving and e-books are becoming a greater share of overall trade book sales.

"Open Road, as a digital publisher of e-books with a focus on the vast number of backlist titles, is perfectly poised to deliver value to its authors, as its marketing approach uniquely focuses on authors as brands and systematically creates authentic connections between the authors and the reader."