We interrupt this series of We Media posts to bring you ... news relating to We Media
One of my co-panelists was Susan DeFife, president and CEO of Backfence.com, which is setting up hyperlocal community-journalism sites in the Washington area. I just got an e-mail from her announcing that the company has gotten a $3 million investment from SAS Investors and the Omidyar Network. With that money, Backfence will create additional sites around Washington as well as expand into at least two other metro areas (which the company isn't naming yet).
No one knows whether there's money to be made off citizen journalism, but if the venture capitalists are getting involved, they must be fairly sure there's a way.