Semafor, two years on: an established player in digital news

In October 2022, Ben Smith launched Semafor, a digital news platform promising meaningful innovations in the news industry. Having recently celebrated its second anniversary, we look at how the news media startup is tracking against its ambitious original goals.

What is Semafor?

Founded by Ben Smith, a former editor-in-chief of BuzzFeed News and media columnist at The New York Times, and Justin Smith, the former CEO of Bloomberg Media Group, Semafor was born to “reimagine quality global journalism.” Launched on October 18, 2022, with Gina Chua as the Executive Editor, Semafor targets an English-speaking, college-educated, professional-class audience.

Over the past two years, Semafor has significantly expanded its reach. The platform now boasts over 750,000 newsletter subscriptions and has sent out more than 2,500 newsletters, which have been opened 115 million times. Its readership includes an influential global audience of C-suite executives, policymakers, and opinion leaders. While users can still access the website free of charge, a subscription plan is expected to be introduced in the near future.

How does Semafor plan to be financially sustainable?

Financial sustainability is crucial for digital journalism startups amidst a sea of free content. Semafor had an initial round of funding of $25 million in June 2022 from investors such as David G. Bradley and Sam Bankman-Fried. In January 2023, after the bankruptcy of FTX, Semafor had a second funding round to replace $10 million invested by Sam Bankman-Fried, securing an additional funding round of $19 million for a total of $34 million.

In 2023, Semafor reported over $10 million in revenue, evenly split between advertising and events. Events have emerged as a surprisingly lucrative revenue stream, boasting profit margins of up to 75%. Unlike many digital platforms reliant on programmatic ads—which can hamper user experience—Semafor opts for premium advertisers like Mastercard, thanks to its high-value readership of C-suite executives and influential business leaders. The company’s business has grown rapidly through global partnerships with over 65 of the world’s most influential companies.

What is the Semaform Editorial Model?

The innovative Semaform model sets Semafor apart from other news startups and established media organisations. This model essentially separates facts from the reporter’s analysis, providing a clearer, more transparent, and honest view of news items.

It breaks down news articles into sections, each with a specific aim:

• The News: objective reporting on the news itself
• The Reporter’s View: an analysis of the news by the reporter
• Room For Disagreement: a contrasting view
• The View From: an alternative perspective on the topic
• Notable: some of the best other writing on the subject

Semafor aims to present a variety of viewpoints on a given issue. This approach helps readers to be more informed and engaged while minimising confusion between facts and opinions. Semafor’s approach is similar to that of Ground News, which lists what newspapers report on the news and their political leaning, letting readers explore issues from various viewpoints.

Investors have been praising this innovative article structure. However, this structure may only appear diverse and understandable while maintaining the same biases and echo chambers prevalent in modern journalism. Whether Semafor’s approach can diversify the discourse and promote a more insightful public dialogue is still being determined. Furthermore, the long-term impact of this approach on media literacy and the broader journalistic landscape remains uncertain and requires further observation.

Looking to Semafor’s Future

Over the past two years, Semafor has solidified its position as a digital news platform. Its innovative approach to separating facts from analysis addresses the blurred lines often found in news articles, providing readers with a fresh, unambiguous perspective.

With over 50 staff members and a growing global presence—including the U.S., Sub-Saharan Africa, and the recently launched Semafor Gulf—the platform is on a trajectory to becoming a truly global news outlet. Plans are underway to expand further into Europe, Asia, and Latin America.

Events have become a cornerstone of Semafor’s editorial and business model. By the end of the year, the company will have convened 75 events worldwide, from Washington D.C. to Zurich, Lagos, Doha, and New York. Their signature World Economy Summit aims to become the “Davos of the United States” in the heart of Washington, D.C.. At the same time, the Next Three Billion Summit alongside the United Nations General Assembly in New York reflects their ambition to influence global discourse.

As they look ahead, the upcoming U.S. election will be a key test of what they’ve built. The political landscape is more divided than ever, but Semafor’s mission remains to provide clear, fair, fact-based coverage that their audience can trust.