The Logic raises C$4 million

The Logic has announced it has raised C$4 million to expand its newsroom and business operations. FT Ventures led the fundraising round, with returning investors Relay Ventures and Four Cornerstones Capital, as well as Roynat Capital.

It marks the first Canadian investment by FT Ventures, the corporate venture arm of the Financial Times (FT) Group.

"We’re thrilled to invest in The Logic. There's a natural alignment between our mission, our audience and our focus on recurring revenue to support quality journalism," said Alexandra Calinikos, FT corporate development and strategy director. "This investment will also give FT Ventures a greater presence in North America, a key growth market for the FT Group."

Founded in 2018 by veteran journalist David Skok, The Logic has become a source of business and tech news in Canada. Headquartered in Toronto, it has bureaus in Vancouver, Calgary, Ottawa and Montreal. Its journalism and newsletters are often recognized in the Best in Business Awards handed out by the Canadian chapter of the Society for Advancing Business Editing and Writing (SABEW).

“The Financial Times is one of the world’s preeminent news organizations. We’re thrilled to have FT Ventures on board,” said Skok, The Logic’s CEO and editor in chief. “They have made clear that they value the quality and calibre of our work and our team, and they see the opportunity to help us continue to build a Canadian news organization that is world class.”

The Logic says the investment will help fuel its growth, which has included an almost 60 per cent increase in paid subscriptions in the last six months and 270 per cent revenue growth over the last three years.

“The FT was the first major news organization to implement an online paywall,” Skok said. “It proved that people will pay for premium journalism. The Logic was founded on that same premise.”

The Logic’s newsroom and business operations remain independent. As part of the investment, The Logic will also work with FT Strategies, the FT’s media consultancy arm.

“We’re excited to work with FT Strategies to reach new readers, to improve the experience we offer our existing subscribers, and to build our thriving subscriptions, partnerships and events businesses,” said Skok.

In the coming months, The Logic will expand its newsroom and business operations. “From the beginning we’ve built carefully and deliberately,” Skok said. “That will continue to be our approach. There’s no shortcut to winning readers’ trust. But now more than ever, Canadians need original journalism that helps them understand their rapidly changing world. We look forward to serving them.”