March 3rd, 2015
The Wall Street Journal’s Matthew Wong wrote an interesting piece about how VCs in the US are beginning to invest in YouTube channels with a view to developing them into global media companies. In the past two weeks alone, two YouTube channels, AwesomenessTV and Dublin-based Balcony TV, have received funding from venture capital firms including Greycroft Partners, MK Capital, New World Ventures and Polaris Venture Partners. And then of course there’s the most high profile YouTube web channel has been Machinima, who have raised more than $50 million at a valuation around $190 million.
The investments illustrate how links are developing between Silicon Valley and Los Angeles:
Dana Settle, a founding partner at L.A.-based Greycroft Partners, which has investments in AwesomenessTV, BalconyTV and YouTube partner Maker Studios, said the area is a primary market for such companies because of readily available entertainment talent and resources.
“Silicon Valley hasn’t invested in content as we think of it,” said Settle. “But with the opening up of distribution, there have been an inflow of great start-ups built on content.”
Read the full article here.