Red Herring has an interesting point about Newsgator’s VC funding by Mobius Venture:
It seems, based on conversation with [Newsgator CEO] Greg Reinacker, that the key to his company’s success in winning funding is not the $29 client software it has developed over the last 18 months. Rather, the recent introduction of a Web-based aggregator service that feeds RSS content into email clients has captured the imagination of VCs. This suggests that a new form of portal is evolving, a collection point for information that is delivered to the customer’s computer in a “personalized” stream.
Newsgator’s Web service is priced for significant margins. From $5.95 a month for individual users who want to track a few RSS feeds up to a $49.95-a-month service for business users who wants to track up to 50 keywords on in the universe of RSS feeds and receive up to 50 “premium” RSS feeds. Presumably, if customers want more tracking capabilities there is a price plan for that, too.