New money in new media

The financial future of the news business is uncertain, but lately US venture capitalists have been placing their bets on journalism.

Over the past year, venture capitalists contributed at least $300m (£180m) to digital news organisations, many of them start-ups, according to a recent report from the Pew Research Center.

“It’s a great time to build new brands in the media landscape,” says Eric Hippeau, managing director at Lerer Ventures, a venture capital fund that has invested in scores of digital start-ups, including Policymic, a news site geared towards millennials – people born between 1980 and 2000.

Mr Hippeau believes the youngest generation of news consumers are an appealing target audience.

“Young people do not really care about the old brands for the most part. They are attracted by brands that cater to and are building content that are specifically for what they like,” he says.

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