Semafor's CEO justifies its valuation by calculating it against next year's projected revenue, not last year's actuals. This forward-looking multiple makes the valuation appear cheaper than competitors like Axios and Politico at their exits, especially given Semafor's higher growth rate at a younger age.
Contrary to the view that events are difficult and not scalable, Semafor's CEO considers them one of the highest-margin businesses adjacent to quality journalism. He is pleased when competitors dismiss events, viewing their skepticism as a competitive advantage that leaves a profitable market open.
After experiencing BuzzFeed's hyper-growth phase, Ben Smith champions a radically slow hiring process. He jokes his goal is to "never hire," focusing only on adding individuals who make a huge impact. He believes the old model of competing with a "cast of thousands" is ineffective for modern journalism.
To avoid building a company for a quick sale, Semafor's founders made a 10-year commitment to each other. They then embedded this philosophy into the company's structure by putting all employees and shareholders on a 10-year vesting schedule, aligning the entire organization for long-term, durable growth.
Entering the hyper-polarized and saturated D.C. news market, Semafor's key innovation was not a new technology or format. Instead, it was a bet that leaders quietly crave balanced, fact-based information. This contrarian focus on separating news from opinion attracted an audience across the political spectrum.
Despite hiring a top creator from Vox and producing high-quality video content they were proud of, Semafor's leadership recognized the strategy wasn't connecting with their target audience or business model. They made the difficult but decisive choice to shut it down, demonstrating a willingness to pivot away from failed theories.
The CEO identifies the single most important decision behind Semafor's success as a maniacal focus on talent and a psychologically healthy culture. He directly links this disciplined approach to hiring and culture protection to achieving a profitable, $40 million revenue model, framing it as a core business driver, not a soft benefit.
Semafor intentionally involves its top journalists in building events from the very beginning. This gives the newsroom a sense of ownership and ensures the events are editorially driven and newsworthy. This model prevents the common media pitfall where events feel like a separate commercial obligation foisted upon journalists.