Axios HQ, an AI-powered communications firm incubated at the eponymous news media company, has raised $20 million in a Series A round co-led by Connecticut firm Glade Brook Capital and New York’s Greycroft. Atlanta, Ga.-based Cox Enterprises participated.
The Arlington, Va., company was spun off from Axios last year when the digital news media unit was sold to Cox Enterprises for a reported $525 million. It is led by CEO Roy Schwartz, one of the founders of Axios and previously a Gallup executive. Schwartz earned MBA and BS degrees from the University of Maryland’s Robert H. Smith School of Business
Axios HQ says the founders of the news media company — Jim VandeHei, Schwartz and Mike Allen — received over a dozen calls from corporations asking help to “communicate with the clarity and efficiency of your newsletter writers.” That eventually led the Axios founders to start the separate communications business.
ChatGPT-like Smarts
Enlisting the help of ChatGPT-like artificial intelligence tools to create communications, Axios HQ recreated the signature style of Axios’ news reports — producing snappy stuff that works across varied communications, including company news and customer communications. Its written material is 40% shorter, on average, than workplace communications and claimed to be many times more effective. Axios HQ has over 500 customers from startups to Fortune 500 firms, including Delta, Sweetgreen, Edelman and Make-A-Wish.
Glade Brook Capital Partners, based in Greenwich, Ct., was a previous investor in Axios, exiting when it was acquired by Cox Enterprises. It has raised $1.7 billion via 20 funds from investors. Its most recent fund worth $430 million came last year.
Founded by Paul Hudson, the firm’s chief investment officer, Glade Brook has made over 40 portfolio investments, including Airbnb, Alibaba and Lyft, and exited 12. Its most recent investments include Good Eggs, KitaBeli, Zepto and Fenbeitong. Hudson was previously a managing director and communications head at Shumway Capital Partners. He has held positions at Rhombus Capital Management, Alterity Partners and Morgan Stanley. He earned an A.B. with honors from Georgetown University.
Prior Axios Investors
Commercial Real Estate
MacKenzie Companies
Advertising / Media / Communications / Public Relations
Nevins & Associates
Financial Services / Investment Firms
Chesapeake Corporate Advisors
Commercial Real Estate
Monday Properties
Venture Capital
Blue Delta Capital Partners
Internet / Technology
Foxtrot Media
Greycroft, which also exited its investment in Axios, has raised $2 billion from 12 funds, and invested in over 700 startups. It has made over 100 exits. Its recent portfolio investments include Stakeholder Labs, Rembrand, RightMove, Craft.co and Howdy.
The experienced venture capitalist duo of Dana Settle and Ian Sigalow co-founded Greycroft. Both serve as co-managing partners.Settle worked at Mayfield and the investment banking at Lehman Brothers. She holds a BA in Finance and International Studies from the University of Washington and an MBA from Harvard Business School. Her active investments include Acorns, Bird, Cloud Paper, data.ai, Goop and HamsaPay. Her notable exits include Bumble (IPO), Maker Studios (acquired by Disney), Pulse (acquired by LinkedIn), The RealReal (IPO) and Trunk Club (acquired by Nordstrom).
Sigalow previously founded payment encryption firm StrongDataand spent many years as a venture capitalist with Boston Millennia Partners. He holds a BS in Economics from the Massachusetts Institute of Technology and an MBA from Columbia University. His active investments include Branch Insurance, Ergatta, Fetch Rewards, HealthVerityand Pie Insurance. His notable exits include Braintree (acquired by eBay), Bright Health Group (IPO), Buddy Media (acquired by Salesforce), Shipt (acquired by Target) and Venmo (acquired by Braintree).
