Vancouver-based Indiegraf has closed $2.9 million CAD ($2.2 million USD) in funding to expand its platform aimed at helping journalists create sustainable digital businesses.
The all-equity, all-primary round, which was classified as seed financing, was led by StandUp Ventures, with participation from Canadian-founded Coralus, formerly known as SheEO, and California-based investor Mucker Capital. It brings Indiegraf’s total funding to $4.7 million CAD ($3.5 million USD).
“Indiegraf’s smart and original approach to empowering the next wave of media entrepreneurs makes them the ideal partner to lead this transformation.”
Indiegraf offers a suite of publishing tools designed to support the growth of small, independent news publications. The startup was founded in 2020 by sister duo CEO Erin Millar and COO Caitlin Havlak.
Both founders previously worked together at the community-funded news outlet The Discourse, which provides journalism for three regions on BC’s Vancouver Island, including Cowichan Valley, Nanaimo, and Comox Valley.
Millar is also chair of the Canadian Journalism Collective, a non-profit created to distribute a $100-million annual contribution from Google to Canadian news outlets.
The rise of digital media has caused significant disruption to traditional news outlets, leading to sharp revenue declines and widespread layoffs. Corporate ownership of local news has also led to major staffing reductions across the industry. In June 2023, Bell cut six percent of its media jobs, and in February, let go of 4,800 workers, including 100 in media.
Meanwhile, independent and digital-first outlets have experienced growth. A January report from the Reuters Institute and the University of Oxford found that 73 percent of media leaders surveyed in 2023 reported increases in digital subscriptions.
The shift toward digital advertising is also evident in Canada. Statistics Canada reports that between 2020 and 2022, print advertising sales fell by 9.8 percent, reaching $613.6 million. Meanwhile, digital ad revenue grew by 30.4 percent, climbing to $337.4 million during the same period.
Indiegraf aims to help independent, local media outlets adapt to and succeed in the digital age. The startup offers what it describes as a “media business in a box” solution, which includes a news website builder, email newsletter platform, supporter payment system, advertising platform, expert marketplace, and access to growth capital.
“Indiegraf makes journalism possible in communities that cannot support the traditional business model of newspapers and radio,” Millar said in a statement.
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Indiegraf expanded to the United States in 2020 after raising an undisclosed amount of convertible debt financing from New Media Ventures and Toronto-based Marigold Capital. That round was also classified as a seed financing round, though Millar told BetaKit in hindsight, the team might have better labelled that round as pre-seed financing.
The startup now claims to have over 150 media businesses in its network spanning Canada and the United States. These include The Discourse, The Philadelphia Hall Monitor, and Dallas Free Press.
In a statement, Indigraf said this funding round comes at a unique point in time for the journalism industry, given that digital newspaper ad revenue in the US is expected to surpass print by 2026.
“A generational transition of media ownership is underway, from large corporate to community ownership,” Millar said. “Indiegraf is at the center of this movement, ensuring that both aspiring content creators and established news organizations can access everything they need to build media businesses that thrive, not only in affluent urban communities but in lower income and news deserts too.”
The capital raised will be used to expand Indiegraf’s platform and make it accessible to more local media entrepreneurs, particularly in underserved communities across the United States and Latin America. The startup plans to launch in the latter market in 2025.
“We believe that the most important media organizations of the future are just getting started or don’t yet exist,” Michelle McBane, managing director of StandUp Ventures, said in a statement. “Indiegraf’s smart and original approach to empowering the next wave of media entrepreneurs makes them the ideal partner to lead this transformation.”
Feature image courtesy Indiegraf.