You are on a mission. You’re tired of hearing the bad news about local news and its deleterious effects on civic engagement and democracy: The layoffs, the cutbacks, the mergers and potential mergers of large newspaper chains. So now is your time to act, to launch a new local news outlet that will provide the coverage of your community that has been sorely lacking for years. You will hold the powerful to account, celebrate inspirational human stories and make a real difference in your locale.
But how? There have been scores of failures in the local news market, both in print and online, so how will you find the winning business model, the right investors, the perfect technology, the helpful support networks — and most of all, the right staff that reflects the diversity of your town or neighborhood? Talk about equity and inclusion becomes action as you staff up your new publication.
It’s a tricky business, but one that can be fruitful because the time is right. Knight Foundation, Google and Facebook have pledged to spend $300 million each over the coming years to support local news, and the projects they have already funded can help jump-start your venture. In a difficult climate for local news, these potential funders, supporters and collaborators can make all the difference between success and failure.
Funding Sources
What’s amazing about this moment is the galvanizing of resources to help out new local news ventures being launched in the vacuum left by failing newspapers. One extraordinary example is the Colorado Media Project, which rose out of the controversial moves made by the Denver Post’s hedge fund owners, leading to an editorial revolt. You can see from this picture (below) that there is an incredible array of supporters and allies for the new project, from foundations to technology giants to support organizations.
In the realm of funders, you have to look closely at the American Journalism Project, which will be funding an array of new “civic news organizations” or CNOs around the country. The AJP isn’t a typical funder, as it practices “venture philanthropy,” which means it is not expecting outsize returns like a venture capital fund.
