Tech Newsletter Company Receives $850,000 Investment

This is among the first pure newsletter-based venture funding I’ve heard in a long time. NarrowCast Group, a Louisville, KY-based start-up that publishes an information technology reports via e-mail, has secured $850,000 in venture funding from local investors.

Among the investors in this funding were Louisville-based investment firms River Hill Capital, Anchorage Angels II, and Prosperitas Investment Partners.

The company, which started last summer, has about 30,000 subscribers to its weekly e-mail. CEO Tom Cottingham and most of NarrowCast’s executive team led Louisville start-up TechRepublic, which was sold to Gartner for $80 million in 2000 (TechRepublic was later sold to CNET Networks, in 2001, for $23 million) .

NarrowCast, like TechRepublic, makes money by selling advertising and sales leads to vendors, such as Microsoft and Oracle, who want to target the subscription group. It also sells information products to the subscribers, who can get the basic e-mail for free.

Under the company’s current plan, this round of investment will see it to breakeven.

More details in the company press release