News | Bertelsmann Investments | London, 12/08/2020

BDMI Invests In Tech Startup Zephr

Bertelsmann’s investment fund Bertelsmann Digital Media Investments (BDMI) is investing in the British startup Zephr, a London-based technology company. Zephr specializes in growing the revenues that media companies generate with subscription services. BDMI is leading the $8 million Series A financing round. In addition to the Bertelsmann fund, Knight Capital, the existing investor Nauta Capital, and Silicon Valley Bank are also participating.

Zephr is benefiting from the fact that all types of online services have grown strongly due to the coronavirus pandemic, and companies are increasingly looking for ways to increase the number of subscribers to their online services. Zephr’s media industry clients include companies such as McClatchy, News Corp Australia, Dennis Publishing, and PEI Media. Using Zephr’s technology has helped clients see a 25-percent increase in subscription revenues in less than six months, as well as a significant increase in new subscriber acquisition, says the startup in a press release. A further advantage is that using the Zephr technology requires no coding expertise, so that non-technical professionals on the marketing teams can also work with it.

“We want to create a world where every subscription product is tailored to each individual customer; where everyone gets exactly what they want, at the right price, at the right time,” says James Henderson, CEO of Zephr, adding that his company is thrilled to have backing from BDMI and the other investors, and will use the new funding to invest in further product development and expansion of the business. Urs Cete, Managing Director of BDMI, adds: “The recent weakness in the advertising market increased pressure for media companies to diversify revenue streams and aim to introduce or optimize subscription models.” He says BDMI is impressed with Zephr’s traction in the media and publishing sector, and its technology, which empowers publishers to create customer journeys that are truly unique.