NetZero Reports Venture Capital Financing

NetZero Inc., an advertising-driven free Internet access provider in Westlake Village, says it has secured multimillion-dollar second-round financing from three venture capital firms.

The firm says it has attracted more than 40 national advertisers and 300,000 subscribers since it began in late October.

Leading the second round of investors is Draper Fisher Jurvetson of Redwood City, joined by Foundation Capital of Menlo Park and Idealab Capital Partners of Pasadena.

Following a business model similar to network television and radio, NetZero offers subscribers free Internet dial-up and e-mail services that are underwritten by on-screen advertising, e-commerce sponsorships and other merchandising opportunities.

Its advertisers include Nissan, BellSouth, eBay, NextCard VISA and N2K’s Music Blvd. Officials said the company has consistently exceeded advertising revenue projections and currently is sold out.

December represented a 100% increase in revenue over the previous month, company officials said. NetZero is now delivering more than 300 million page views per month, placing it among the top 16 sites worldwide, according to figures from NetRatings.