Silicon Alley Magazine to Fold

NEW YORK — Silicon Alley Reporter magazine is shutting down and re-launching to focus on venture capital, underscoring the depressed state of Manhattan’s new-media industry.

The monthly magazine, which started in 1996, published for the last time as Silicon Alley Reporter with the October issue. It will relaunch as Venture Reporter in late December, according to Jason McCabe Calacanis, editor in chief and chief executive officer of Rising Tide Studios. Rising Tide also publishes several daily e-mail newsletters and runs industry conferences.

Venture Reporter will cover the top ten venture capital investment categories, including Internet security, biotechnology, and software. News of Silicon Alley Reporter’s shutdown was first reported in the New York Times.

The company started publishing as a daily e-mail newsletter focused on the venture capital market six months ago and was pleased with its reception, according to Mr. Calacanis. At the same time, the company was reevaluating the need for a monthly magazine dedicated to the dwindling New York Internet community.

“I always knew it would be about a movement for a period of time,” he said, adding that the Internet advertising, content, and technology infrastructure markets in Silicon Alley have almost completely shaken out, with giants like AOL Time Warner Inc. and DoubleClick Inc. increasingly dominant. He added that there has been a dearth of story ideas in recent months. “The questions have generally been answered,” he said.

The continuing advertising recession – which helped sink other titles, including the Industry Standard — also played a role in the decision. At its peak, Silicon Alley Reporter had about 100 pages of advertising. The last issue had about 20 pages.

Mr. Calacanis hopes Venture Reporter will be between 100 and 150 pages, including editorial content. The magazine will come out six times a year.

Mr. Calacanis declined to discuss this year’s revenue or profits. Previously, the company has said that it had $11.6 million in revenue in 2000, up from $4.5 million in 1999. It raised an unspecified amount from investors earlier this year.

The editorial staff from Silicon Alley Reporter will now write for Venture Reporter, with no job cuts planned as a result of the move. Silicon Alley Daily, an e-mail newsletter companion to Silicon Alley Reporter, will continue to publish.

“It’s a very symbolic thing for people — the print magazine to be going away — which I understand,” Mr. Calacanis said. “But in life you can sit there and let the current take you, or you can pick where you want to surf.”

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