The company will use the funds to hire more editorial staffers, according to Axios, which first reported the news.
Acronym plans to invest in other local news sites in states like Arizona, North Carolina and Pennsylvania.
“The steady decline of local news around the country, paired with the rise of misinformation being spread online, has been alarming," stated Tara McGowan, CEO and founder of ACRONYM.
McGowan said the company hopes digital news publishers like The Dogwood can "help fill that void and counter misinformation online."
Acronym has invested in other for-profit companies in an effort to support a “sustainable digital infrastructure for the progressive movement,” according to the company’s site.
It backs companies like political-technology company Shadow Inc. and digital consulting firm Lockwood Strategy, according to Axios.
The Dogwood launched this spring. It has four editorial staffers based in Richmond and Arlington.
“As the number of local news outlets decline in Virginia and across the country and the amount of digital information surges, it’s hard to know where to turn. We want to fill the gap — and your social feeds — with content that is thoughtful, engaging, inspiring and motivating,” reads the site’s About section.
The Dogwood covers a wide range of topics, such as environment, politics, economy, education, transportation, healthcare, housing, entertainment and lifestyle.