Subscription e-reading startup raises $14 million in funding

After tendering $14 million in a new round of financing, investors are hoping that e-reading startup Oyster will harvest a pearl. The company, which launched out of New York last fall, employs a business model similar to Netflix, offering customers unlimited access to over 100,000 e-books for a monthly subscription fee of $9.95.

Investors are betting that subscription start-up Oyster can do for books what Spotify has done for music and Netflix has done for movies. Today Oyster announced that it received $14 million from Founders Fund and Highland Capital Partners. The New York-based start-up had previously received $3 million from Peter Thiel’s Founders Fund, Chris Dixon, SV Angel and Shari Redstone.