The Athletic, a digital sports media company, has raised an additional $40 million in a new round of funding. This capital adds to the previous investment money raised since its launch in 2016, bringing its total funding raised to $70 million.
The Athletic is now valued at an estimated $200 million, and thinks it can meet the growth expectations of venture capitalists in the digital media field.
Why it matters:
Venture capital investments have not fared well, overall, in digital media companies with advertising-based revenue models. The Athletic, however, is a subscription-based company that currently has more than 100,000 subscribers with an impressive 90% renewal rate — roughly the same size of a digital subscription base as The Los Angeles Times.
This strong subscription model has helped The Athletic obtain investment capital in what has become a bleak funding environment for digital companies that rely on advertising sales for revenue.