There once was a time when many said that Media was dead, and only a fool of an investor would put his money into such a property. It appears, however, that this old adage is no longer true as the fast-growing Vox media company has just closed another round of funding that puts the company’s valuation close to $400 million.
According to a release by Vox, General Atlantic, a New York-based investment firm has invested $46 million into Vox. As Vox is a private entity, it’s not known what sort of stake General Atlantic will be taking in the company. In comparison, new Media mammoth Vice is valued at $2 billion while Buzzfeed’s latest investment round pegs the company at $850 million.
To put things into perspective, Jeff Bezos paid $250 million to purchase The Washington Post.
Although venture capital companies have typically avoided putting serious capital into the usually low-margin media business, as Anton Levy explains to The New York Times the market environment has changed.
“For the next five years, you are going to have the next generation of media platforms emerge. There are parallels to cable in the ‘80s. There is going to be a huge amount of value creation,” he said to the Times.
The strength of Vox for investors lies in its abilities to develop custom content for advertisers. Vox’s CEO, Jim Bankoff, says his company will use part of that investment to expand VoxCreative, its internal custom content development agency.
Bankoff also said in a blog post that the company will be expanding its video offerings (which as Ziff Davis’ parent company’s earnings show, is a mighty profit driver).
According to comScore, Vox’s flagship, Vox.com, grew to 10.9 million visitors per month in October having only launched half a year earlier.