Staff at news website The Global Mail have begun a desperate search for a new backer after entrepreneur Graeme Wood told them he would no longer fund the site he helped start less than two years ago.

Mr Wood, who made his fortune from travel website wotif.com, delivered the news to shocked staff on Wednesday night.

Graeme Wood: no longer going to fund the site.

His announcement almost certainly spells the end of Australia’s first major experiment with philanthropically-funded journalism, though staff said they remained hopeful that The Global Mail might be able to live on in a reduced format if backers and advertisers could be found.

Mr Wood, who is the media start-up’s non-executive chairman, had pledged $15 to $20 million but had not given all the money upfront.