NewsBreak Company Profile

Background

Overview

NewsBreak is a local news aggregation platform founded in 2015, headquartered in Mountain View, California, with additional offices in New York, Beijing, and Shanghai. The platform delivers geographically specific news to users through its mobile app and website, aiming to bridge the gap between new technology and traditional local media. By aggregating content from over 10,000 sources, NewsBreak provides timely and accessible community-focused news and information.

Mission and Vision

NewsBreak's mission is to make local information easily accessible and abundantly available, helping people live safer, more vibrant, and connected lives. The company strives to empower local journalists and storytellers, filling the voids created by local news deserts.

Key Strategic Focus

Core Objectives

Local News Aggregation: Delivering hyper-local news content tailored to users' geographic locations.

AI-Driven Personalization: Implementing advanced machine learning algorithms to improve content recommendations and increase user engagement.

Creator Tools Expansion: Launching tools for local journalists and content creators to publish and monetize their work on the platform.

Local Business Integration: Developing features that connect users with local businesses, including reservation systems and deals platforms.

Primary Markets

NewsBreak focuses exclusively on the United States, targeting users seeking localized news and information. The platform has identified news deserts—areas lacking robust media presence—as opportunity markets, aiming to provide coverage in communities underrepresented by traditional media.

Financials and Funding

Funding History

Series A: May 2015, raised $10 million.

Series A3: November 2016, raised $4 million.

Series B: February 2017, amount undisclosed.

Series B1: March 2019, amount undisclosed.

Series C1: January 2021, raised $115 million.

Notable Investors

Francisco Partners: A San Francisco-based private equity firm.

IDG Capital: A Beijing-based investment firm.

Utilization of Capital

The funds have been directed towards technological advancements, expanding the contributor network, and enhancing AI-driven personalization features.

Technological Platform and Innovation

Proprietary Technologies

NewsBreak utilizes an "Interest Engine" algorithm, recommending news content based on users' interests and locations. This technology was developed by founder Jeff Zheng and is shared with Yidian, a Chinese news aggregation app.

AI-Driven Capabilities

The platform employs artificial intelligence to aggregate and personalize news content. However, this approach has faced criticism due to instances of AI-generated erroneous stories affecting local communities.

Leadership Team

Jeff Zheng – Founder & CEO

Jeff Zheng, a former Yahoo executive, founded NewsBreak in 2015. He has a background in computer science, with a Ph.D. from SUNY Buffalo. Zheng's career includes leading technical teams at Yahoo, focusing on web search relevance and personalized content recommendation.

Harry Shum – Chairman of the Board

Appointed in 2020, Harry Shum is the former Executive Vice President of Microsoft's AI and Research Group. He previously led Microsoft's Bing and MSN groups.

Competitor Profile

Market Insights and Dynamics

NewsBreak holds a 35% share of the local news app market, followed by Nextdoor at 20% and Patch at 15%. In the broader digital news landscape, NewsBreak's share is 8%, trailing behind platforms like Facebook (30%) and Google News (25%).

Competitor Analysis

Ground News: Focuses on providing diverse perspectives on news stories.

Patch: Operates digital local news feeds across the U.S.

MSN: Offers a wide range of news content from various sources.

Strategic Collaborations and Partnerships

In April 2022, NewsBreak launched the Contributor Network to fill local news gaps by empowering local journalists and storytellers. This initiative aims to provide coverage in communities underrepresented by traditional media.

Operational Insights

Challenges

NewsBreak has faced criticism for AI-generated erroneous stories and legal challenges related to copyright infringement. In 2022, the company settled a lawsuit with Patch Media for $1.75 million without admitting wrongdoing.

Competitive Advantages

Hyper-Local Focus: Tailors content to users' specific geographic locations.

AI-Driven Personalization: Utilizes machine learning to enhance user engagement.

Contributor Network: Engages local journalists to provide original content.

Strategic Opportunities and Future Directions

Expansion of Contributor Network

By continuing to onboard local journalists and storytellers, NewsBreak aims to enhance its coverage in news deserts and provide more original content.

Technological Enhancements

Investing in AI and machine learning to improve content personalization and address previous challenges related to AI-generated inaccuracies.

Local Business Integration

Developing features that connect users with local businesses, including reservation systems and deals platforms, to diversify revenue streams.