PaidContent.org gets funded

My friend Rafat over at PaidContent.org - required reading for class - has just received some top-shelf funding for his blog. While a lot of bloggers are mentioned as getting funding, one of the most interesting bits in the article is the implication that blogs are the new magazines... [emphasis mine]

The financing, though small in comparison with most Web deals, is one of several in recent weeks that indicate optimism on the part of early-stage investors in the viability of blogs as an outlet for journalism, rather than the gossip and personal opinion that characterizes much of the medium.

Mr. Patricof says niche publications on the Web are a "great place to be," with lower investment requirements and easier spinoff opportunities than print media. "To start a magazine today would cost a minimum of $15 million to $25 million, and you have to spend through three or four years of losses," Mr. Patricof said. With blogs, "the economics are a lot better."

What do you think? Is this a fad or a new trend in publishing? Are entrepreneurs launching blogs and blog networks where in the past they woul dhave launched a magazine? (It's worth noting that almost all of the recently funded bloggers have been doing it for years... no 'overnight' successes here - just hard work and consistent quality, driving readership. OK, some had helpful brand platforms to launch from...)

More from the WSJ here.