Big news on the Chicago blog scene today: Chi-Town Daily News has folded ... maybe.
Editor Geoff Dougherty, a former Chicago Tribune reporter, said the organization, which received a Knight Foundation grant in 2007, ran out of cash. He said the blog will re-organize as a for-profit venture in a month. We'll see.
My take: Chi-Town Daily News was considered one of the better start-ups in the Chicago area. It's sad to see it go. But as we saw in the late 1990s, there is an end to grants and venture capital. Back then, venture capitalists expected a return on investment in five years. Now, your startup is lucky to have two years. Web 2.0 is on a business plan and profitability schedule, just as Web 1.0 was and Web 3.0 will be.
Chi-Town Daily News lasted four years, the last two thanks to the Knight grant and other money raised. It's important to note that Knight money also was invested in the hyperlocal site, Everyblock.com. Everyblock was purchased by MSNBC a few weeks ago.
Editor Geoff Dougherty, a former Chicago Tribune reporter, said the organization, which received a Knight Foundation grant in 2007, ran out of cash. He said the blog will re-organize as a for-profit venture in a month. We'll see.
My take: Chi-Town Daily News was considered one of the better start-ups in the Chicago area. It's sad to see it go. But as we saw in the late 1990s, there is an end to grants and venture capital. Back then, venture capitalists expected a return on investment in five years. Now, your startup is lucky to have two years. Web 2.0 is on a business plan and profitability schedule, just as Web 1.0 was and Web 3.0 will be.
Chi-Town Daily News lasted four years, the last two thanks to the Knight grant and other money raised. It's important to note that Knight money also was invested in the hyperlocal site, Everyblock.com. Everyblock was purchased by MSNBC a few weeks ago.
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