High Gear Media (HGM), an Online publisher of automotive-themed digital media, has secured $5.5 million in Series B funding. DAG Ventures led the round and existing investors Accel Partners and Greylock Partners also participated. This brings HGM’s total capital raised to $12 million.
The Palo Alto-based company, owns and operates a network of 38 automotive websites, including TheCarConnection.com, GreenCarReports.com, AllCarsElectric.com and AllAboutPrius.com. The company offers the struggling auto-industry targeted advertising for potential buyers. HGM says it’s seen traffic and revenue grow substantially in the first half of 2009 and expects to be profitable with this round of funding.
The media network seems produce its content at a low burn rate. It offers auto-specialized-writers a place to get their stories out on the Web, unpaid. If those writers can prove to succeed, potential earnings are a reward. HGM doesn’t throw writers in the game unequipped though – it gives them access to a database of images, reviews and specs, along with media credentials for auto events. Another plus is that writers can get their content onto some of HGM’s syndication partners, which include Yahoo! Autos, AutoTrader.com, Glam Media, FoxNews, SF Chronicle and others. HGM also aggregates automotive content from around the Web beyond its own stories.
Amid the automotive industry crisis, it’s interesting to see companies like High Gear Media raising capital. Another digital auto company, Zag raised $37.4 million in funding this year for its Online auto sales platform.
High Gear Media plans to use this round of funding for acquisitions and expansion of its auto-themed network.
The company initially raised $3 million in seed funding when it launched in October
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Zag (http://www.zag.com/) has created a better way to buy a car. Zag operates a robust auto shopping, research and pricing technology platform that saves buyers money by concentrating group buying power, while providing a superior car buying experience by connecting buyers with select dealers that provide great upfront pricing and a no-hassle delivery process. Zag provides its platform on a private-label basis to affinity buying groups, such as USAA, 14 AAA motoring clubs, Overstock.com, Capital One Auto Finance, American Express and Administaff. The company's approach to the car buying and selling process is garnering awards - Entretech gave Zag its 2008 Entrepreneurship Award for emerging companies, InfoWorld designated Zag's platform as one of the 100 most innovative corporate IT solutions for 2006, and Entrepreneur Magazine named Zag in its 2006 "Hot 100" list of the fastest-growing companies. Zag is based in Santa Monica, Calif.
