Investing in Media, Investing in Democracy
Originally published on Sept 17, 2024 by Impact Entrepreneur here. By Elizabeth Gilbert Kaetzel
Can impact investing support democracy? This was the question at the heart of the New Media Ventures Summit this July that brought together investors, entrepreneurs, and progressive leaders. Together attendees explored how supporting media, civic tech, and advocacy social enterprises can be an effective avenue for social change.
A healthy democracy depends on civic engagement and the active participation of the governed people. Ideally, all citizens would have equal opportunities to participate and the appropriate information to make informed decisions. In reality, there are many social and economic barriers for many communities that restrict participation.
Many Summit discussions focused on how investors can support organizations and projects that break down those barriers at multiple inflection points. Strengthening democracy requires building access for those who have been systematically excluded and filling knowledge gaps for individuals and communities.
New Media Ventures (NMV) tackles this problem by investing in social enterprises that organize and empower communities with media and technology. Their fund leverages both early-stage investments in mission-driven, for-profit companies and grants to other c3 nonprofits. NMV also has a c4 Fund, a fiscally sponsored project of Tides Advocacy, that allows them to support political action startups. With this blend of approaches, NMV can infuse capital into early-stage companies for initial growth and scalability.
The resulting portfolio is one that reveals a growing infrastructure to support civic engagement and movement building.
“We are investing in long-term solutions through early-stage projects,” summarizes Carlissia Graham, President of New Media Ventures. “That kind of work requires both bold activism and long-term thinking.”
She points out that it’s important to think beyond any single election cycle. “We want to make sure there’s access to the ballot. But then once you get the vote, once you get the access, what does your life look like? How can we actually use technology and media to address some of these long-term systems, systemic barriers that systems impacted people face?”
Several speakers also emphasized that both long-term support and agility in changing conditions are needed for sustainable change. For investors and funders who may feel moved by current political turmoil, investing in democracy doesn’t have to mean fully restructuring your impact strategy.
Nwamaka Agbo, a Summit speaker and CEO of the Kataly Foundation, reiterated this point in her own session on unlocking resources for collective power. “We keep an eye on the horizon of where we’re going while navigating this moment,” Agbo said. While the tactics may change, an organization’s mission and vision shouldn’t change with every election cycle.
In the case of Agbo’s work at Kataly and as Managing Director of the Restorative Economies Fund (REF), investing in economic justice and shared prosperity can help break down barriers to civic participation. “When we build economic stability, we make it more possible for everyone to engage in the democratic process,” said Agbo.
There have been many “moments” in the last 10 years that stir up an urge for action among investors and activists. In the wake of George Floyd’s murder in 2020, organizations from every industry reckoned with if and how they should respond to the sudden shift in public consciousness around racial justice. Similarly, as concerns grow around disinformation and the advent of AI, investors are considering the future of media and looking to respond.
However, the impulse to respond quickly can come at the expense of effective change. Racial justice work didn’t begin with George Floyd’s murder, and it hasn’t stopped in the shifting political environment since. Organizations like New Media Ventures work closely with communities to identify key needs likely to emerge in the short and long term. By investing in projects before they are needed, organizations are building the infrastructure for leaders to respond thoughtfully and collectively.
In an article from 2023, Graham wrote that taking this approach has paid off when the tides of consumer interest change. “Traffic is migrating to where we’re already investing,” she wrote. “The greatest uptick in user migration is in cultural media and niche properties – the type of media that NMV has been growing over the last decade.”
We have certainly seen a coordinated investment in media infrastructure from the political right when it comes to disseminating messaging. Disinformation and political conspiracy theories are successful largely due to a coordinated investment and then leveraging of a right-wing media ecosystem since before the 2016 election. These media strategies begin by building trust among audiences for years before a particular election cycle.
So how can progressive investors find organizations and partners who have taken this community-driven, long-term view of media? One way to start is by seeking out non-traditional networks.
Jessica Salinas, Chief Investment Officer at New Media Ventures, says NMV intentionally challenges assumptions of traditional due diligence to bring more equity to their investment pipeline. The result is a highly diverse portfolio of media, civic tech, advocacy, and organizing social enterprises focused on driving progressive change.
Investors also shouldn’t wait to get started. Investing in tech that can amplify trusted messengers or empower voters can have impacts beyond any one election. Venture capital can scale social enterprises before philanthropy offers grants for growth. Sustainable solutions take time and capital is needed at every stage of growth.
“There is a welcoming community [of projects] ready and they are scalable and impactful, but they need injections of capital all the way through the process,” says Salinas.
