UpMyStreet Secures First-Round Financing From News International

News International has invested £9m in UpMyStreet.com, an online community resource. A further £4m investment is being made by Rothschild subsidiary, Continuation Investments, through News Internationals’ new media arm, News Network.

The investment will give News International a 21% stake and Continuation a 7% equity stake. News International’s executive chairman Les Hinton is to join the board of UpMyStreet.com, which has been valued at £43m. News International is currently following a strategy of building national internet-related businesses through News Network.

The UpMyStreet.com site allows users search by postcode for information about their local community, including property prices, government services and schools’ performances. Plans are in place to offer the service through digital TV and mobile phones following a content for equity deal with Open Interactive, which launched last year (see Interactive TV Launches In The UK).

Alliances have also been struck with internet companies including Excite and AOL. The new cash injection will be channelled into further expansion in the UK and Europe, according to Tony Blin-Stoyle, UpMyStreet.com’s managing director, and potential partners are already involved in discussions. The flotation of the company is thought to be a possibility for the future.

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