I first thought this headline was fake, but if everyone is raising a venture fund, why shouldn't influencers?!
If I followed my value investing instinct, I would immediately pass on any investment that had influencers making investment decisions...or I would typically short the idea immediately...but Mr. Beast is a Beast...so where does this go?
"Night Media, the six-year-old, Dallas-based multimedia talent management company, is closing a debut fund with $20 million in capital commitments from the powerful family-friendly online influencers it manages, along with other social media stars."
It turns out, they are only investing in what they know, consumer facing companies, most importantly content creating companies (including gaming), which rely on user generated content that support the "creator economy." At the very least this is their sweet spot, and they are not saying to the world we are now investing in "tech enabled services focused on the future of real estate."
A few other fun facts:
- They started with a venture studio incubator which executed Mr. Beast Burger
- Andreessen Horowitz and Lightspeed Venture Partners are sending deal flow!
- Investors and deal partners want access to their creators as part of deal sharing
- They are actually hiring a professional investor...phew
https://techcrunch.com/2021/03/18/mrbeasts-management-company-night-media-has-a-new-venture-fund-thats-backed-by-creators/
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