Money to start up

An entrepreneurial media outlet needs startup funding. The cheapest method, bootstrapping, just requires the founder’s cash and time, and many have made it work. But in today’s global economy there are investors of various types looking for worthwhile projects to put their money into. The smallest are “angels,” whose conditions are usually friendly and flexible. But it was venture capital, that is, professional investment funds, that gave entrepreneurial journalism its name, and our region has become an active centre for this kind of speculative investment. VC investors hand over money and in-kind services in return for a stake in the company or as a loan in the hope that their risk will result in an initial public offering that will multiply their stake many times over. A number of outlets in China, Indonesia, Singapore and Taiwan have gone this route. Three US-based investors that have some or all their focus on media are discussed: Media Investment Development Fund, North Base Media and Luminate. Some Hong Kong media, meanwhile, have raised startup funding through crowdfunding, that is, inviting small amounts from many people, and they and others have also received donations. These methods are particularly valued as a vote of confidence with no business strings attached.