Too few traditional lenders are willing or able to invest capital in local news organizations. Catalytic capital, which is more flexible and risk tolerant than conventional capital, is one way to connect news organizations with the resources they need, according to a MacArthur-supported white paper from Press Forward.
Catalytic capital is flexible, impact-oriented investment that can help local news organizations and their supporting infrastructure grow, transition, experiment, and build long-term resilience. This type of investment often enables organizations to receive additional traditional grants and commercial financing.
The paper encourages practical action, with use cases for investing catalytic capital in news organizations, shared infrastructure, and journalistic ecosystems. It includes eight recommendations for philanthropy, investors, policymakers, local leaders working to build a robust catalytic capital market for local news. By expanding the range of capital available, local news can be more driven by community needs and their mission rather than by limited financing options.
