The venture capital firm Arrandale Ventures is working with the Texas Press Association and its members to help publishers make additional money from their advertising inventory.
Venture capital-backed startups currently spend about $60 billion each year on marketing with the big internet companies. Unfortunately, local media sees almost none of this money.
“That’s not right,” Arrandale Ventures partner Jeremy Mims said. “And it needs to change.”
Arrandale Ventures was created by two local media and venture capital industry veterans, Zachary Richner and Mims, and has partnered with more than 4,000 media outlets to invest more than $1 billion to secure the future of local media.
For the past 18 months, Arrandale Ventures has been building a program under which local media companies can trade their advertising for equity in fast-growing startups and obtain their piece of this marketing bonanza, according to Richner and Mims.
“When I heard about what Jeremy is doing with Arrandale Ventures I thought it was a great idea,” Denton Record Chronicle Publisher Bill Patterson said. “Too often local marketing, advertising and promotion isn’t thought about until disappointing results happen. This gives our industry an opportunity to partner with new companies— many of which are in categories that may not be current users of our services — and gives us a chance to work with them to show the power of our messaging ability,” he said.
“I’ve signed on, as it’s a win-win in my opinion. We can use all of our assets to message and we can pick and choose what products and to what level we wish to support them,” Patterson said.
By making it easy for publishers to have shares in some of the best new companies, Arrandale Ventures hopes to help ensure that the next big company — and the next big IPO — will pay for journalism tomorrow.
For more information, visit arrandaleventures.com or email firstname.lastname@example.org.
A webinar for TPA members outlining the program is set for 10 a.m. Aug. 19. Click here to register.
Richner and Mims recently appeared on Editor & Publisher Reports, a vodcast with Mike Blinder, to discuss the program. Click here to see the video on YouTube.
This is how Mike Blinder described the program in the introduction:
“For years, many media companies used remnant inventory as reciprocal trade in order to receive in-kind goods and services, such as prizes or meals. But what if there were new start-up companies willing to give you equity in their business in exchange for being able to market to your readers and viewers? That opportunity is now available from a new venture capital firm called Arrandale Ventures.”