Electronic messaging specialist USA.Net Inc said it has closed a round of financing for approximately $23m, which includes investments from Netscape Communications Corp – with whom it had already forged a strategic agreement to add free email to the Netcenter web site (CI No 3,395). The private Colorado Springs- based company will use the money to accelerate growth of its web- based email services – both free and managed for businesses – and increase its market share. It lists previous investors as ABS Ventures, American Express Co, Philadelphia Ventures and Premiere Technologies Inc. The current round of funding, led by BT Alex Brown, was oversubscribed, according to the company. It boasts diverse revenue streams, including online advertising, content distribution and service fees and says that in the past six months, its subscriber base has grown by more than 50%, to 4.6 million. The company has every intention of remaining independent, it says, and figures to eventually reach and sustain profitability through continued growth of its revenue sources. It also says it is working on more partnerships, but would not be more specific.
