Even well-funded companies like Artifact and the Messenger have struggled and shut down, and many news companies are grappling with questions of sustainability. While some businesses, such as Semafor, are edging toward profitability, the challenges of maintaining a successful news enterprise persist, particularly as venture capital grows scarcer.
Against this backdrop, it is critical to learn from startups experimenting with innovative revenue models. Here is a selection of twelve news media startups testing unique ways to achieve financial sustainability. Not all have reached profitability quite yet, but their approaches offer valuable insights.
1. Particle (2024)
Particle, founded in 2024 by former Twitter engineers, is an AI-powered news reader designed to enhance how users consume news. The platform aggregates articles from multiple sources, organizing them into cohesive “Stories” and providing AI-generated summaries to present diverse perspectives on complex topics. Users can personalize their news feed by selecting preferred topics and sources, allowing for a tailored reading experience.
In June 2024, Particle secured $10.9 million in Series A funding led by Lightspeed Venture Partners, bringing its total funding to $15.3 million. This financial backing supports the company’s mission to revolutionize news consumption through AI technology.
Particle has partnered with reputable news organizations, including Reuters, AFP, and Fortune, to ensure fair compensation for content creators. These collaborations aim to explore new business models that benefit publishers and readers, addressing concerns about AI’s impact on the media industry.
On iOS devices, Particle offers features such as customizable summary styles, political bias indicators, and interactive Q&A sessions with an AI chatbot. These tools empower users to engage with news content more deeply and critically.
2. Bulletin (2024)
Bulletin is an AI-powered news reader designed to combat clickbait and provide concise, digestible news summaries. Launched in early 2024 by indie developer Shihab Mehboob, Bulletin allows users to customize their news experience by selecting or removing RSS feeds and categories like World News, Technology, and Business. It differentiates itself by offering tools to enhance the user experience, such as AI-powered headline improvements and article summaries.
Bulletin uses OpenAI’s GPT to generate “Smart Summaries” that quickly distil the main points of articles or entire news sections. It also includes a clickbait removal feature to rephrase misleading headlines into more accurate and descriptive titles. For instance, a headline like “The Most Ambitious Space Game Ever Made Is Free This Weekend” might be rephrased to “No Man’s Sky offers free weekend trial with Omega update.” These features streamline the news-reading experience while maintaining clarity and trustworthiness.
The app integrates across Apple devices, including iPhone, iPad, Mac, Apple Watch, and even Apple Vision Pro. It also offers unique features like iOS Live Activities, enabling users to display a real-time news ticker on their lock screens.
Bulletin generates revenue through premium plans, offering features like unlimited AI summaries and clickbait removal starting at $3.99 monthly. Future updates are expected to include social network feeds, potentially integrating platforms like Mastodon and Bluesky.
3. 404 Media (2023)
Launched in 2023 by former Vice Media journalists, 404 Media focuses on technology, internet culture, and the intersection of societal issues with emerging trends. Its investigative approach explores topics like hacking, digital privacy, niche online communities, and the right-to-repair movement, targeting readers who seek in-depth, critical reporting in these areas.
404 Media adopts a worker-owned model, ensuring editorial independence and equitable revenue sharing among its founders and contributors. The startup primarily generates revenue through memberships, offering subscribers ad-free content and exclusive investigative pieces. It also relies on partnerships with other media organizations to expand its reach.
Within its first year, 404 Media gained attention for its innovative reporting and sustainable business approach. The platform positions itself as a destination for critical journalism on underreported topics, appealing to readers disillusioned by mainstream coverage.
404 Media’s unique focus on independent, community-driven journalism provides a model for how smaller startups can carve out a space in the crowded media landscape while addressing niche but critical issues.
4. Punchbowl News (2021)
Punchbowl News, established in January 2021 by former Politico journalists Jake Sherman, Anna Palmer, and John Bresnahan, focuses on delivering high-quality reporting on the U.S. Congress and political leadership. The platform offers a daily email newsletter and podcast, providing in-depth coverage of Capitol Hill’s inner workings.
The startup’s business model centers on a membership-based approach, offering free weekday-morning newsletters and premium subscriptions that include additional content such as afternoon and evening editions, exclusive Q&A sessions with the authors, and a Sunday conversation. This strategy has attracted a dedicated readership interested in detailed political reporting.
Punchbowl News has gained recognition for its non-partisan and fact-focused journalism, emphasizing scoops and insights about key power players in Washington. The platform’s commitment to unbiased reporting has positioned it as a trusted source for political news.
5. Ankler Media (2022)
The Ankler, founded in 2017 by veteran journalist Richard Rushfield, began as a Substack newsletter offering sharp-edged commentary on the entertainment industry. In January 2022, media executive Janice Min joined as co-owner and CEO, leading to the formation of Ankler Media. This expansion transformed The Ankler into a broader media company encompassing newsletters, podcasts, and live events.
Ankler Media’s flagship newsletter, The Ankler, has been recognized as a “hit Hollywood newsletter” by The New York Times and was listed among Fast Company’s “9 Newsletters That Make You Smarter.” The platform offers insider perspectives on Hollywood, appealing to industry professionals and enthusiasts alike.
In June 2022, Ankler Media raised $1.5 million in seed funding at a $20 million valuation, supporting its growth and diversification efforts. The company has expanded its team and ventured into live events, such as the “Documentary Spotlight with Raoul Peck” at the Toronto International Film Festival in 2024. These initiatives aim to enhance audience engagement and solidify The Ankler’s position as a leading voice in entertainment journalism.
6. TheFlipSide (2017)
The Flip Side aims to bridge the gap between liberals and conservatives by presenting curated perspectives from across the political spectrum in a single daily newsletter. Each edition focuses on a central topic and highlights excerpts from leading conservative publications like The Wall Street Journal and National Review alongside liberal outlets like The Guardian and The Washington Post. The approach provides a concise yet comprehensive view of the arguments shaping public discourse, appealing to readers seeking to understand both sides of an issue.
What began in 2017 as a side project for co-founder Annafi Wahed has since evolved into a robust platform with over 250,000 subscribers, including educators and college students who use it as a teaching tool. The Flip Side’s editorial team works to distil large volumes of articles and commentary into short, accessible summaries, helping readers cut through the noise of clickbait headlines.
The startup has also ventured beyond newsletters by launching a subscription-based social media platform designed to foster constructive bipartisan dialogue. Unlike traditional platforms, its proprietary algorithm incentivizes thoughtful contributions and cross-aisle engagement, promoting a collaborative and less polarized space for political discussion.
Despite its growing influence, The Flip Side continues to operate with a lean team, emphasizing its commitment to community and sustainability. Its model relies on premium memberships and sponsorships to maintain financial independence, with a focus on scaling its platform to expand its reach and impact. By fostering nuanced conversations and combating political echo chambers, The Flip Side exemplifies how media startups can navigate today’s polarized landscape while staying financially viable.
7. Puck News (2021)
Puck is a new media company at the intersection of Wall Street, Washington, Silicon Valley, and Hollywood, focused on building a business model aligned with the creator economy. Its journalists are also owners of the company. Puck was founded in 2021, and it aims to create a brand focused on the inside conversation and the story behind the story. Puck’s model encourages readers to interact directly with journalists, offering a fresh approach to producing and consuming news. The company brings together talented journalists with media executives who understand the new distribution streams and the power of the creator economy.
Puck News achieves financial sustainability through a combination of subscription revenues, advertising, and significant funding rounds. As of November 2022, Puck had managed to attract 200,000 email subscribers, 40,000 of whom were paying for all-access reporting at rates of $12.99 monthly or $100 annually. This subscription-based model forms the core of their revenue, valuing the company at approximately $70 million following its latest funding round.
8. The News Movement (2020)
The News Movement’s (TMN) purpose is to deliver trusted information to younger audiences in ways that appeal to them (e.g., video, multimedia content, more concise paragraphs) and on subjects that are significant to them (e.g., the environment, equality, and entertainment). The organisation is growing, having recently expanded into the US and UK.
TNM’s business model is based on their expertise in communicating to younger audiences. For instance, it does consultancy for established media brands (The Associated Press, National World, Amazon) by creating content for their socials and providing advice on their social media strategy. TNM also run different events and help other brands run unique events. Therefore, TNM positions itself as a versatile partner for brands, media companies, and organisations looking to connect with Gen Z audiences.
9. 19th News (2020)
The 19th News, a journalism startup focusing on gender, politics, and policy, stands as an independent, nonprofit newsroom. It aims to empower women, LGBTQ+ people, and other underrepresented communities with information and resources. The 19th engages in-depth journalism to cover crucial issues affecting these communities, offering a platform for diverse voices and perspectives.
The 19th News generates revenue primarily through donations as a tax-exempt organisation. They rely on financial support from their community, including individual memberships and corporate support (with no editorial sway). Individuals who donate are given access to exclusive content, from AMAs with journalists to a monthly donor-only newsletter. Startups like The 19th News are not the only media organisations that rely on this revenue stream. Large publishers like The Guardian or La Presse are also based on donations or are not-for-profit businesses.
10. Tortoise Media (2018)
Tortoise Media, founded in 2018, adopts a “slow news” philosophy, prioritizing in-depth analysis over breaking news to provide readers with a comprehensive understanding of current events. Despite raising over £10 million in funding, the company has faced financial challenges, reporting cumulative losses exceeding £15 million since its inception.
To enhance financial sustainability, Tortoise Media has diversified its revenue streams. Members gain access to exclusive newsletters, member-only events, and discounts on merchandise. The company’s online shop and expanding merchandise offerings contribute additional income. Audio journalism has emerged as its most profitable segment, significantly boosting revenue growth.
In September 2024, Tortoise Media entered discussions to acquire The Observer, the world’s oldest Sunday newspaper, from the Guardian Media Group. This strategic move aims to combine Tortoise’s digital expertise with The Observer‘s established print presence, potentially broadening its audience and revenue base.
Despite ongoing financial hurdles, Tortoise Media continues to invest in its operations, increasing its workforce to over 70 employees. The company remains committed to its mission of delivering thoughtful journalism and fostering community engagement through innovative platforms and events.
11. RideHome (2019)
Ride Home Media specializes in producing short-form podcasts that summarise the day’s news in various subject areas, serving as a “TLDR as a Service” for listeners. Its value proposition lies in delivering concise, digestible content for busy individuals who want to stay informed but may not have the time to consume full-length news articles or broadcasts. This model offers a unique blend of convenience, brevity, and depth, catering to audiences interested in technology, politics, celebrity news, and other verticals, making it easier to stay updated on the go.
Ride Home Media raised $1 million in seed funding from Tiny Capital. Co-founder Brian McCullough highlighted that a daily podcast can be financially viable with a modest audience size, indicating that their revenue model may rely on both funding and the economics of podcast advertising with a focus on niche audiences.
12. Rocanews (2020)
RocaNews, launched in August 2020 by co-founders Max Towey, Max Frost, and Billy Carney, initially started as an Instagram page. Within its first year, it achieved 1 million Instagram followers and boasts over 200,000 newsletter subscribers. RocaNews differentiates itself from other news startups by focusing on delivering factual and non-partisan news and employing the use of positive journalism. RocaNews emphasises building a community around engaging and insightful content and through their gamified news app, without pushing political narratives.
RocaNews introduced an iOS app with news, quizzes and a gamified experience to increase engagement. The app has about 100,000 downloads and has around 40,000 monthly active users. RocaNews has ventured into subscriptions for its app and newsletter, offering tiers ranging from $2.99 to $7.99 per month. The company has raised $5.3 million in funding and projects $350,000 in 2023 revenue but is not yet profitable.
Conclusion
These top twelve news media startups highlighted in this article adopt practical and distinct strategies for achieving financial sustainability. Their success lies in specific approaches such as targeting niche markets, leveraging cutting-edge technology, and innovating within their revenue models.
These examples offer valuable lessons for media companies seeking to adapt and thrive amidst digital transformation. The insights provided by these startups are particularly relevant for crafting strategies that effectively engage audiences and explore new business opportunities.
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