BookBub, a daily deal site which sent out emails about ebook sales, announced yesterday that they had raised $3.8 million in Series A funding. The investors include Avalon Ventures, NextView Ventures, Founder Collective, and Bloomberg Beta.
This 2-year-old Massachusetts-based startup is well-known both in digital publishing circles as well as among readers for its daily email blasts. With a subscriber list that now tops 3 million, BookBub offers publishers and indie authors to get their discounted ebook deals in front of highly motivated buyers. Depending on the genre, BookBub charges anywhere from $100 to thousands of dollars to be featured in a newsletter.
BookBub has run 10,000 ebook deals over the past couple years, leading to purchases of more than one million ebooks per month (as well as downloads of millions of free ebooks). "BookBub’s traction proves it’s filling a huge need for readers, authors, and publishers," said David Beisel, partner at NextView Ventures. "We meet with countless startups, but it’s uncommon to find one that has become such a meaningful part of an industry so early in its existence."
Part of BookBub's success is that they don't just sell placement; they also curate what goes in each email blast.
I haven't written about BookBub much on this blog but I have been listening to what authors have said on KBoards, AbsoluteWrite, and elsewhere. Many are puzzled by the standards that BookBub uses to choose whether to accept an authors money (yes, BookBub has turned down money before) but most agree that this can be an effective tool for boosting ebook sales.