The move comes as the iPad and tablet publishing market is heating up, with more titles hitting app stores by the month. The decision by Apple to include subscription services on the iTunes Store has also attracted a number of high-profile publications, including Wired and The New Yorker.
But the funding also proves the Australian tech market is now hotter than it has ever been.
And while Ahern would not reveal the size of the investment – it could be over $10 million – recently Australian gaming company Firemint was sold to EA for a figure believed to be somewhere around $US25 million.
Ahern says he is confident the tablet publishing market is improving quickly, and that Mogeneration's digital publishing platform Oomph will become more popular as magazines ditch print and go online.
"We know it's what the consumers want, and they're quite happy with these types of products. And we definitely want to stay away from these PDF conversions, you go to the extra effort and you get a good result."
"The biggest thing has been this new subscription model Apple has introduced. These prices are pretty good, and you're getting monthly magazines for really only a dollar or so."
Mogeneration announced yesterday it had completed its first round of capital raising, bringing in several million dollars to assist with expanding the sales and marketing departments.
The funding was led by some of the biggest names in the Australian tech scene, including Getprice chief executive Chris Hitchen, Andrew Walsh and Simon Chamberlain. All three will take a seat on Mogeneration's board, which already consists of Ahern himself and Mick Liubinskas from Pollenizer.
Pollenizer was one of the earliest investors in Mogeneration, becoming involved shortly after Ahern founded the company with chief technology officer Tom Adams in 2008, after having worked for News Limited.
The size of the funding was not disclosed, nor was the ownership structure of the company, but Ahern says adding the three names will add significant experience.
"I'm really in awe of their performances," he says.
Mogeneration began building apps in 2008, striking hits with games like MooShake, but quickly determined publishing would be a more lucrative business. It started building apps for ACP Magazines, Haymarket Media and Oxford University Press, branching into the education market as well.
Now it uses the Oomph publishing solution to attract publications such as Australian Women's Weekly and Gourmet Traveller – Ahern says these titles benefit from their DIY solution.
"Apps are an expensive proposition for companies to undertake, and they can be quite difficult to show off to businesses. But if we can make a platform that allows publishers to be in control, then it can work."
"This is really quite an interactive platform, and I think judging from our four and five star ratings on the App Store, they've done very well."
But over time, Ahern believes this concept will change as magazine apps cease to be carbon copies of their print counterparts and instead find their own voice. The challenge, he says, will be to ensure these platforms allow publishers to create interactive, exciting apps for users.
"In the long view we see these magazines as stopping being just monthly titles, and instead will become more like the liveliness of the web."
"Monthly publications are sort of based around printing on trees once a month to save costs, but if you have an app that reacts to live events, or can publish a story immediately, then it can work."
Ahern says tablet magazines need to start combining the quality writing of top publications with the "beauty" of a well-designed layout.
"Over the last two months we've been ramping up, hiring quite a few more people and doing more work. We're going to get on with what we do best."
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