PandoDaily is a news site which covers the technology startup ecosystem. It was founded in 2012 by Sarah Lacy. With this funds raised from new and existing investors, the full amount raised by the company to date is 4.2 million.
According to Sarah in her article about the funding, “$1.2 million is more than we initially set out to raise, and we are still wrapping up a few last conversations, so the final total may tick up to $1.5 million before it’s all done .”
She adds that the company has raised far less than its competitors because it does not want any one investor to be in a position to influence how things are done at the company. So with the structure of the funding received, none of the venture capitalist backers sits on the board, and none owns close to 10 percent of the company. Typically most series A investors require 20 percent and a board seat, or the deal isn’t worth their time.
Secondly, she believes it’s vitally important that a content company with a long-term strategy gain control of its own destiny as quickly as possible. “It will take five to ten years to build the brand and audience we envision, and I worry that investors’ excitement around content could wane over that period. Many startups running off of venture cash bloat their staffs to a dangerous level. They’ll need more venture cash to keep going. I’m not convinced that cash for content companies will be there over the long term.”
Sarah was in Nigeria in 2011 for “The Platform” and Jason Njoku of iROKO credits her with the exposure that thrusted his company into international limelight.
