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JOURNALISM FUNDRAISING Things to consider when raising money for your work Matt McAlister

Fundraising for journalism startups

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Page 1: Fundraising for journalism startups

JOURNALISM FUNDRAISING

Things to consider when raising money

for your workMatt McAlister

Page 2: Fundraising for journalism startups

QUESTIONS YOU MUST KEEP ASKING YOURSELF

➤ Why are you raising money? When are you raising the next round? Why not now?

➤ How much do you need? What will you spend it on? How does your plan change if you get less than you asked? How about if you get more than you planned?

➤ Who will benefit from what you are doing? What do they get out of supporting you? How will you help them with their goals and agendas?

Page 3: Fundraising for journalism startups

DIFFERENT SOURCES FOR DIFFERENT NEEDS

You benefit

Cost of money

Others benefit

Foundations Friends Investors

Page 4: Fundraising for journalism startups

DIFFERENT SOURCES FOR DIFFERENT NEEDS

You benefit

Cost of money

Others benefit

Foundations Friends Investors

• Lengthy process • Few options

• Large grants • Simple requirements

Page 5: Fundraising for journalism startups

DIFFERENT SOURCES FOR DIFFERENT NEEDS

You benefit

Cost of money

Others benefit

Foundations Friends Investors

• Major outreach challenge • Hard to raise enough

• Few strings attached • Repeatable

Page 6: Fundraising for journalism startups

DIFFERENT SOURCES FOR DIFFERENT NEEDS

You benefit

Cost of money

Others benefit

Foundations Friends Investors

• Few invest in journalism • Must have a solid plan • Considerable pressure

• The VC machine works • Lots of future potential

Page 7: Fundraising for journalism startups

THE PROCESS: GRANTS

Call for entries opens

or general application

➤ Pitch ideas in response to what the funder wants.

➤ Get some other folks involved.

➤ Fill out a form on the foundation web site…

➤ …Don’t miss the deadline!

Review

➤ Funder contacts short list of favourite applications

➤ They need to know that you are real and that you mean what you said

➤ They need to check your assumptions in your plan…can you do what you said you could do for the amount you want?

You win!

➤ Fill out some docs.

➤ Give bank details and sign contracts

➤ Cash shows up in your bank account.

➤ Get to work!

Assessment

➤ Check in now and again. Keep them informed.

➤ Interview with program officers to ensure you did what you said you would do.

➤ Prepare things that they can use internally to talk about you

3-6 months lead time 3-6 months later 1-2 months later 12 months later

Page 8: Fundraising for journalism startups

THE PROCESS: INVESTORS

Investor pitch

➤ Prepare a 10-slide presentation with your idea, your team and your plan.

➤ Get it out there. Try to find a sponsor investor.

➤ Be flexible about how much you want to raise but be specific about how much you need.

Negotiate

➤ Get a lawyer who can translate deal terms…have you formed the company?

➤ Decide: Are you ready to give up control? How much? Would you even know if you gave up too much control?

➤ Frequent emails and calls at strange hours

You win!

➤ Fill out some docs.

➤ Give bank details and sign contracts

➤ Cash shows up in your bank account.

➤ Get to work!

Assessment

➤ Board meetings and regular updates…no surprises!

➤ Are you ready to raise more? Why not?

➤ Always be raising money…or find a CEO to do it.

1-3 months Days Quarterly1-3 months

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“Some online media ventures are finally perceived as being

sophisticated and agile tech companies, as well…”

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AVOID BAD OUTCOMES…➤ Don’t assume people with money

understand what motivates you. Develop your story.

➤ Don’t ask for money if you’re unsure what you want to get out of it. Be clear (and honest!) about your intentions.

➤ Underfunded projects are disappointing for everyone. Seek more than you need.

➤ Spend as much time planning your costs as you do articulating your vision. Get someone to challenge your assumptions.

➤ Research your funding source before you pitch. Pitching off-target may discredit you in the future.

https://flic.kr/p/a56BDB

Page 17: Fundraising for journalism startups

CREATE POTENTIAL FOR SUCCESS…

➤ Never stop trying. Failure only exists if you don’t learn from your experience.

➤ Never stop networking. Help comes from many surprising places.

➤ Give others the power to join your cause and become part of your story.

➤ Understand how funders benefit by backing you.

➤ Get familiar with the jargon.

https://flic.kr/p/bEWSum

Page 18: Fundraising for journalism startups

Resources

YCombinator - Startup Documents

FeldThoughts - Term Sheet Series

DocuSend - Startup fundraising study

The Entrepreneur’s Guide to Business Law

Page 19: Fundraising for journalism startups

THANK YOU!Matt McAlister