Vucinic, photo by Ted.com |
Many media investors see disaster everywhere they look, as traditional media lose audience, revenues, and relevance.
Sasa Vucinic, co-founder and co-managing director of North Base Media, sees great investment opportunities, especially in developing markets, such as Central Europe, Asia-Pacific, and Latin America.
“We invest in serious digital-only media oriented toward the younger audience that can disrupt their markets. And we think it’s a phenomenal business that will bring great financial returns.”
Vucinic, who began his journalism career in Serbia, has been a crusader for media organizations that tell the truth about corrupt, oppressive regimes. I reached him via Skype in South Korea, where he was looking at investment opportunities. I wanted to ask him about social purpose investing, where investors direct their money toward organizations that not only give a financial return but also have a positive impact on society.
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Vucinic said he no longer talks about social impact with investors. “I spent 16 years trying to prove to investors that a media company has a two pronged nature: It is a business that will be sustainable and profitable, if possible, and at the same time it provides an incredibly important role in the society,” he told me. “I actually think that if you do not understand that media plays an important role in society, you’re not very likely to invest in it anyway.”
A bank for media
Vucinic has worked both sides of media investment: As the editor-in-chief of a news magazine and radio station in Belgrade, he found it difficult to get the financial support he needed.
So he decided to see if he could change the financial equation. In 1995, he co-founded the Media Development Investment Fund to act as a kind of investment bank in support of media that aimed to report aggressively on oppressive regimes.
The organization mostly made loans, at first, rather than taking an equity share, because that was less threatening to the fiercely independent journalists they were financing. The journalists were wary of sharing ownership with any investors. In 20 years, the organization has provided $153 million in financing and professional consulting to more than 100 businesses in 39 countries.
Some of the companies in the North Base Media portfolio. Click to enlarge. |
However, the investment world has changed, Vucinic says, and now independent media companies are willing to give a share of equity to their investors. The change has been driven in part by what Vucinic calls an explosion of new technology and new ways of delivering journalism.
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