Newzulu completes AU$11.5m capital raising to fund acquisition

Newzulu has completed an AU$11.5 million capital raising, which is expected to fund the company's AU$5.1 million acquisition of Filemobile.

Australian crowdsourced media startup Newzulu has completed an AU$11.5 million capital raising, in excess of the minimum subscription.

The new funding round capitalises Newzulu at around AU$57.5 million.

The raising was completed with investments by a range of media-related investors, institutional investors, high net worth individuals, directors, and existing shareholders of the company.

The raising is expected to help fund Newzulu's recent agreement to acquire Canadian media and brand software platform Filemobile for up to approximately AU$5.1 million, which was settled in October 2014.

Newzulu also said that the proceeds will go towards working capital for the expansion of the company in the US and Europe, assist in the global launch of Newzulu Live platform for video-streaming news, and Newzulu Prime platform for advertisers and brands.

Newzulu executive chairman Alexander Hartman said the company's focus over the next two years is to build revenue through selling software platforms, editorial services such as Newzulu Live, and brand creative services globally.

"I am grateful to investors for their support of Newzulu, and am confident we can successfully execute on our business plan, particularly over the next two years as we take Newzulu Live to market," he said.