Mercator LabsInvesting in the Future of New Media

This week two new media companies, Mashable and Business Insider raised a combined total of $42 million in new venture funding. While some of their content overlaps, both have distinct business models and their respective infusions of funding will continue bringing them on divergent paths when it comes to business models.

At the highest of levels, Business Insider (BI) is a new-aged blend of media and market research. The uphill battle here is BI was a media site before a research portal and even with Henry Blodget’s extensive background as an analyst, it’s difficult to make the transition: difficult but not impossible. BI Intelligence continues to expand in coverage and quality of reporting.

As for Mashable, with categories such as World, Entertainment, Lifestyle, Business & Tech, the coverage is bleeding ever so close to the likes of CNN.com, a site that with reportedly in talk to acquired Mashable back in 2012.

There have been a bevy of investments into new media properties including BuzzFeed, Gawker and Vox Media in recent months as different sites test different types of content and business models to varying degrees of success.

What we do know, however, is that the future of new media has a wide open road and there is room for more than one new media company. The question is which business models will help keep them afloat and not falling prey to a larger corporate structure.