Who Owns 1440 News? The Real Story Behind This Rising Newsletter

The ownership of 1440 News follows a simple structure: 1440 Media operates under employee ownership, with a venture capital firm holding a small stake. Tim Huelskamp, Andrew Steigerwald, and Pierre Lipton founded this rising newsletter in 2017, and it has become a soaring win in a short span.

The newsletter's growth tells an impressive story. 1440 News has expanded to over 3.2 million subscribers by November 2023, adding 1 million new readers within a year. The company's remarkable performance earned it the 79th spot on the 2023 Inc. 5000 list, with a 5,500% growth rate. The name "1440" holds dual meaning - it represents the minutes in a day and marks the year when the printing press came into existence.

Let's take a closer look at the story behind one of America's ever-changing newsletters. We'll explore its founders' journey, editorial standards, revenue streams (with advertisements contributing over 95%), and examine whether it lives up to its commitment to unbiased coverage.

Who owns 1440 News?

1440 News belongs to 1440 Media LLC, a company where employees own the majority stake. A few venture capital firms hold minority investments. This structure differs from many media companies that large corporations or wealthy individuals control. 1440's distributed ownership helps maintain its editorial independence.

Founders: Tim Huelskamp, Andrew Steigerwald, Pierre Lipton

The three co-founders started 1440 News in 2017 and remain its biggest shareholders. Each brings their own strengths to the team:

Tim Huelskamp leads as CEO with his strong finance background. He spent 10 years in private equity at American Capital, a $20 billion fund where he turned around struggling companies. His financial knowledge helps him run the business side and add value to the Business and Markets newsletter section.

Andrew Steigerwald serves as Editor-in-Chief with his scientific background (PhD). He used to translate scientific papers for the US House of Representatives. As the editorial leader, he writes about 85% of the daily newsletter content. His focus stays on Science & Technology and Politics & World Affairs sections.

Pierre Lipton serves as Chief Operating Officer (COO) and earned a spot on Forbes' 30 Under 30 list. He handles the company's monetization, analytics, and public relations.

Employee ownership and minority investors

1440 Media has developed a unique ownership structure beyond its three founders. The founders and top management team own most of the company. Sources confirm the company has 22-25 employees, with each generating $1-2 million in revenue.

The core team members who own minority stakes include:

• Head of Product and Design Aaron Enequist-Leiker

• Head of Social Lauren Routt

• Chief Growth Officer Mike Rome

• Director of Brand Partnerships Amanda Black

• Chief Content Officer Sony Kassam

• VP of Product and Growth Mitchell Kapoor

1440 has raised over $2.5 million in funding. MassChallenge and Cannon Capital hold minority positions as venture capital partners. The company took an interesting approach early on. They secured $500,000 in revenue-based financing with a unique structure. This helped them build their subscriber base while keeping control.

Clarifying the 'independent' label

1440's "independent" status shows in its business model and editorial approach. The company operates without any larger media conglomerate's control.

The founders and employees own most of the company, so they make decisions without outside investor pressure. This setup supports their mission to deliver impartial news coverage.

Their employee-ownership model lines up with their "more than one million readers worldwide" claim. This structure lets them stay true to their main goal of offering "an impartial view of what's happening in the world". No single entity controls their editorial direction.

How 1440 News got started

Tim Huelskamp and Andrew Steigerwald started 1440 News in 2017. They created a news roundup newsletter they wanted to read themselves - one without bias or slant. The founders spotted an opportunity in the market. Busy professionals needed one source that could deliver balanced news about multiple topics quickly. This eliminated their need to visit many websites each day.

The idea behind the name '1440'

The name "1440" has two powerful meanings that capture what the newsletter stands for. It refers to 1440, the year that changed history with the invention of the printing press which brought knowledge to everyone. The name also represents the total minutes in each day, showing how the newsletter helps readers use their time well.

The name wasn't their first pick. The team used a different name for their minimum viable product (something like "Streamlined"). Co-founder Andrew Steigerwald suggested "1440" because he loved its historical meaning. Huelskamp liked it even more after realizing it matched the minutes in a day. This made it perfect for showing their goals of spreading knowledge and saving time.

From 78 subscribers to millions

The first 1440 newsletter reached just 78 people - only friends and family of the founders. Growth came naturally from there. The team spent their first year making the product better before they tried any growth tactics.

Their hard work brought amazing results. By May 2021, they had about 750,000 subscribers who opened their emails more than 50% of the time.

The newsletter kept growing fast:

• 2 million subscribers by October 2022

• 3 million subscribers by 2023

• Nearly 4 million subscribers by October 2023

Two main strategies drove this growth early on. Subscribers shared the newsletter with others, and the team partnered with similar newsletters for promotion. Later, they moved to Facebook ads, becoming skilled at this channel before trying others.

Bootstrapping and early growth

In stark comparison to this, 1440 chose to bootstrap instead of seeking investors like other digital media startups. They used MailChimp's free plan for up to 10,000 subscribers. The team focused on making their product better for almost a year before thinking about making money.

The company chose $500,000 in revenue-based financing instead of traditional venture capital. The deal had unique terms: after a year, they paid back 5% of revenues until the investor got triple their money, plus a small equity stake as "schmuck insurance".

This careful approach worked well. The team waited until they had about 50,000 subscribers before adding advertising. Their business model proved highly successful - they earned 2-5 cents per email open. Today, the company makes over $20 million yearly with just 19 people. This shows their focused, bootstrapped strategy was the right choice.

Inside the editorial process

1440 News' editorial process serves as the life-blood of its growing popularity. Their newsletter team has a five-year-old rigorous system that delivers factual, unbiased reporting to millions of subscribers.

Fact-checking and content curation

1440's editorial team takes a detailed approach to content curation. Editors, experts, and analysts review hundreds of sources in science, culture, politics, and business daily to create their digest. This human-driven process will give readers carefully vetted information instead of algorithm-selected stories.

Fact-checking remains the life-blood of their editorial philosophy. The team verifies every piece of information to the "highest standard". 1440 stands apart from many digital publications by having multiple team members review content. Social media posts need at least five team members to share their views to line up with brand messaging.

Editor-in-Chief Drew Steigerwald leads this process. His scientific background and nearly a decade of work on state-of-the-art public policy, including time as a legislative fellow in the U.S. Senate, strengthens the newsletter's dedication to factual accuracy.

Avoiding opinion and emotional language

1440's distinctive quality lies in their unwavering stance against opinion and emotional language. The team creates compelling content without emotional language or clickbait while maintaining strict editorial guidelines, despite social media's tendency to polarize.

The newsletter commits to several essential principles:

• Coverage of only "consequential news" that affects many

• Facts and actions take priority over cherry-picked quotes

• Context without interpretation

Their editorial team steers clear of speculative or opinion-based stories. Steigerwald puts it simply: "We try to go an inch deep and a mile wide". Readers can form their opinions based on factual reporting.

How stories are selected and summarized

1440 chooses stories that affect people, places, or communities. The editorial team reads dozens of articles on each topic before they consider which links to include.

Newsletter events get between one sentence and one paragraph explaining the simple details. Readers can scan the entire newsletter in under five minutes. This format works well for busy professionals who want detailed news coverage.

Readers looking for more depth will find links to longer articles from credible independent sources. The team shows transparency by offering these tools and links.

The company never wavers from its commitment to factual reporting. Media Bias Fact Check confirms 1440 has "no failed fact checks in the last 5 years" and rates "High for factual reporting due to proper sourcing".

This disciplined editorial approach helps 1440 achieve its remarkable 53 percent newsletter open rate. These numbers surpass industry averages by a lot and show that readers value fact-focused, unbiased news reporting.

How 1440 makes money

The financial engine behind 1440 News runs on a finely-tuned advertising model that brings in over $20 million each year with a small team of just 19 people. Their founders' business sense shines through in how they turned their faster-growing newsletter into money.

Advertising as the main revenue stream

Advertising makes up more than 95% of 1440's income. The newsletter uses a cost-per-thousand-impressions (CPM) model. Advertisers pay about $50 combined for its two ad formats - $40 for the larger format and $10 for the smaller one. This model has proven to be the quickest way to generate revenue.

The math works out simply: each time a subscriber opens an email, 1440 makes about 5 cents. Their newsletter's open rate sits at 60-65%[182]. With roughly 25 emails sent monthly, subscribers open 15 emails per month on average. This adds up to 70-75 cents per user monthly, which beats industry standards substantially.

The company spends about $3 to get each new subscriber. They earn this back within four months. They want to make $3 for every $1 they spend on getting new users. The founders call this "taking more of a private equity approach" with "unit economics" and "recurring revenue".

Reader donations and affiliate links

Reader donations serve as a small but valuable second revenue stream[192]. Subscribers can choose between two newsletter options: a free version with ads or a premium ad-free version. This setup lets readers pick what works best for them.

On top of that, 1440 uses affiliate marketing as another revenue source. They add affiliate links where they make sense and earn commissions from reader purchases. Sponsored content brings in extra money too, though the team carefully checks potential advertisers before working with them.

Events, webinars, and content licensing

To vary beyond direct newsletter revenue, 1440 has grown into events and webinars. These options give subscribers more value while creating new ways to earn money. Content licensing offers another path to monetize their editorial work.

The founders - Tim Huelskamp, Andrew Steigerwald, and Pierre Lipton - thought over this business model carefully. They focus on fine-tuning their "flywheel": delivering an excellent newsletter daily, making money through well-chosen ads, and growing their subscriber count. This focused approach helped them achieve a soaring win while keeping their editorial freedom intact.

Is 1440 really unbiased?

Does 1440 live up to its claims of being unbiased? Third-party evaluations and the company's statements show that 1440 News delivers factual reporting with minimal political slant. The philosophical debate about achieving complete journalistic objectivity continues.

What 'unbiased' means in journalism

The term "unbiased" journalism needs a closer look. Journalists want to present information objectively without personal views. Media experts believe true objectivity is impossible because humans have inherent biases.

Snopes makes an interesting point:

"The problem remains though: If you don't believe that unbiased reporting can exist, then it's impossible to agree with the claim that 1440's newsletter is 'unbiased' in any capacity".

1440's co-founder Andrew Steigerwald is upfront about this reality. He describes their editorial process as one with "subjective assessment" to select links. This honest approach shows they understand that complete neutrality remains out of reach even as they work toward balance.

Media bias charts and third-party ratings

External evaluations back up 1440's claims of minimal bias. Media Bias Fact Check gives 1440 a "Least Biased" rating with a -0.5 score and "High" marks for factual reporting. Ad Fontes Media's Bias Chart places 1440 "right in the center of the political bias spectrum".

The newsletter's politically balanced readership speaks volumes. Their content strikes a chord with people of different viewpoints instead of favoring one side.

Editorial safeguards to reduce bias

1440 uses several methods to keep bias in check. They put fact-based reporting first. Their sources come from "Left-Center to Right-Center" outlets. The team stays away from emotional language that might influence readers.

Notwithstanding that, critics see areas to improve. Some point out opinion-based content that slips through despite their editorial rules against "speculative or opinion-based stories". More openness about their editorial team would boost their credibility further.

Conclusion

1440 News is 19 team members strong and employee-owned. Founders Tim Huelskamp, Andrew Steigerwald, and Pierre Lipton own much of the company with their management team. MassChallenge and Cannon Capital, both venture capital firms, hold minority stakes. This structure helps the newsletter maintain its editorial independence.

The founders' approach appeals to millions of readers. Their strategy of delivering fact-focused news without emotional language has helped them grow from 78 subscribers to over 3.2 million in just a few years. The name "1440" is clever - it represents both the minutes in a day and the year the printing press was invented. This symbolizes their dedication to quick knowledge sharing.

The editorial team follows strict fact-checking protocols. Several team members review content before publication. The team's choice to avoid opinion and emotional language sets them apart from other news outlets. This disciplined strategy has paid off - their open rates are a big deal as it means that they exceed 50%, well above industry standards.

1440's business model is remarkably straightforward. They rely on advertising for over 95% of their revenue and earn about 5 cents per email open. So they recover their $3 subscriber acquisition cost in four months. This creates a sustainable business that brings in over $20 million yearly with just 19 people.

Complete journalistic objectivity remains a debated topic. However, independent evaluations back 1440's claims of minimal bias. Media Bias Fact Check rates them as "Least Biased" with "High" factual reporting. Their politically balanced readership shows they deliver content that works for people across ideological lines.

Without doubt, 1440 News has become a 3-year-old game-changer in today's fragmented media world. Their steadfast dedication to fact-based reporting and streamlined business model shows that balanced information can serve both journalistic integrity and financial success.

FAQs

Q1. Who founded 1440 News and what's the story behind its name?

1440 News was co-founded by Tim Huelskamp, Andrew Steigerwald, and Pierre Lipton in 2017. The name "1440" has dual significance - it represents the number of minutes in a day and the year the printing press was invented, symbolizing the newsletter's commitment to efficient knowledge dissemination.

Q2. How does 1440 News maintain its claim of being unbiased?

1440 News employs several strategies to minimize bias, including prioritizing fact-based reporting, carefully curating sources from across the political spectrum, and avoiding emotionally charged language. Third-party evaluations, such as Media Bias Fact Check, rate 1440 as "Least Biased" with high factual reporting.

Q3. What is 1440 News' primary source of revenue?

Over 95% of 1440 News' revenue comes from advertising. They use a cost-per-thousand-impressions (CPM) model, earning about 5 cents per email open. This efficient model allows them to generate over $20 million annually with a lean team of just 19 people.

Q4. How does 1440 News select and present its stories?

The 1440 editorial team scours hundreds of sources daily, prioritizing stories with significant impact. Each event typically receives a brief explanation, allowing readers to scan the entire newsletter in under five minutes. Links to longer articles from credible sources are provided for those wanting more information.

Q5. Does 1440 News protect subscribers' personal information?

1440 News states that they do not sell personal information. They respect subscribers' privacy rights, including the right to request access to or deletion of personal data, and to know what data is collected and disclosed.