The article discusses the challenges faced by Black-owned media startups in securing funding and achieving success. Despite some notable exceptions, such as Capital B and AfroLA, many Black-owned publications struggle to access venture capital and achieve the same level of revenue as their non-Black counterparts.
According to the article, only 4% of media is owned by Black people, and in 2020, just 2% of ad dollars went to Black-owned companies. The author suggests that this lack of representation and funding perpetuates a cycle of underfunding and limited opportunities for Black entrepreneurs.
The article highlights several key points:
- Lack of deal flow: Black news startups often struggle to access the same level of advertising revenue as their non-Black peers, making it difficult to secure funding.
- Revenue is more important than venture capital: Rather than seeking venture capital, Black publishers may find it more beneficial to focus on building relationships with advertisers and generating revenue through targeted advertising.
- Niche audiences are a strength: While niche audiences may be less lucrative for large media companies, they can be a significant asset for Black-owned publications that have deep connections with these communities.
- More visibility is needed: The author suggests that increased transparency and collaboration among Black media entrepreneurs could help to create more equitable deal terms and greater visibility within the ecosystem.
The article also mentions several notable examples of successful Black-owned media startups, including:
- Black Tech Weekly: Launched in partnership with Inc. Magazine, NBCUniversal, and Apple News, this platform focuses on telling stories about Black founders.
- Capital B: A nonprofit publication that has achieved success through its focus on investigative journalism and community engagement.
Overall, the article highlights the challenges faced by Black-owned media startups and emphasizes the need for greater visibility, collaboration, and investment in these companies to help them achieve their full potential.