LibreDigital, which you've likely never heard of, supplies technology that delivers eBooks from publishers to readers' gadgets. HarperCollins, Simon & Schuster, Hachette, Wiley, The New York Times, Wall Street Journal and USA Today are among LibreDigital's clients, which include six of America's top 10 book publishers. LibreDigital offers its technology as a service rather than requiring publishers to configure servers and install and maintain software themselves.
The round was led by Triangle Peak Partners, a first-time investor in LibreDigital, and prior investor Adams Capital Management. The company's other key investors include HarperCollins Publishers, The New York Times Company and Noro-Moseley Partners.
"Demand for books & newspapers in digital formats is out-pacing supply," Triangle Peak co-founder David Pesikoff said in a prepared statement. The amazing thing about this over-the-top statement is it's true. Consumers seem frustrated by the limited options for reading newspapers and books in an electronic, portable format.
LibreDigital chairman Martin Neath (he's a partner at Adams) claims the market for e-books and similar electr0nic editions of printed materials will exceed $2 billion by 2012. That'll require something hotter than the Kindle to read it on, which could just be the smartphone in your pocket.
(Disclosure: Paul Boutin is a freelance contributor to The New York Times and The Wall Street Journal.)