Starting up the News: The Impact of Venture Capital on the Digital News Media Ecosystem

Allie Kosterich, Matthew S. Weber

Research output: Contribution to journalArticle

2 Scopus citations

Abstract

Venture capital funding is an increasingly common yet understudied management model in the rapidly changing market of news media. Drawing on scholarship in media management and entrepreneurship, this study applies a community ecology framework to analyze the relationship between venture capital funding and digital news media firms. In doing so, this work explores the interaction between legacy news media firms and new entrants as they struggle for scarce resources and seek to grow in the face of rapid change. A dataset tracking funding activity of legacy and startup news media firms is used to analyze resource allocation within the digital news media ecosystem. Results of the analyses provide insights for news media management by furthering understanding regarding venture capital funding models and the generative mechanisms that help drive growth. Specifically, findings highlight the importance of cross-sector engagement and the tension between firm age and position for growth in the digital news media ecosystem.

Original languageEnglish (US)
Pages (from-to)239-262
Number of pages24
JournalJMM International Journal on Media Management
Volume20
Issue number4
DOIs
StatePublished - Oct 2 2018

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