Venture Capital
Venture capital has flowed into digital media companies during the past decade. VC-backed operators say these investors threw money around and drove strategy based on unrealistic expectations and without regard to profitability. This system, helped along by cheap social distribution, led to some successes, but many others are now looking for a lifeline. Last month, Mic, a news site for millennials that had once raised $60 million and was valued on paper at more than $100 million, laid off its staff after running out of money. It’s become a familiar story in venture-backed digital media this year.

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