The Venture Codex

Participated · Series D · Apr 2018

fuboTV is a streaming TV service built around live sports, offering access to NBA, NHL, UFC and extensive international soccer coverage (Bundesliga, EPL, La Liga, Liga MX, MLS, World Cup qualifiers, UEFA Champions League). The service offers a Fubo Premier package (70+ channels) priced at $19.99 for the first month and $44.99 thereafter, with add-ons for extra sports, international packages, DVR and additional streams. It claims over 30,000 sporting events per year and a 10,000+ title VOD library, and had over 100,000 paid subscribers as of September 2017 with continued double-digit growth. fuboTV has broadened beyond pure sports by adding entertainment networks (including channels tied to strategic investors) and expanded broadcast affiliates (Fox in 87% of U.S. households; NBC and CBS in 72% and 68%; 257 local affiliates total). The company generates revenue from subscriptions and advertising, with advertising representing a low single-digit percentage of revenue but growing rapidly after launching server-side ad insertion; management expects ad revenue per subscriber above Spotify's published benchmark. fuboTV is forecasting a revenue run rate of over $100 million within a year and plans to use new capital to double office space and its engineering and product teams, open a second headquarters, develop new products and content offerings, and increase marketing. FuboTV is a streaming TV service that targets sports fans by offering a lineup of sports-focused channels and live sports coverage. The company initially focused on soccer but has expanded into dozens of sports channels through deals with Fox and NBC Universal. It distributes apps for iPhone, iPad, Android, Apple TV, Amazon Fire TV and Roku. FuboTV replaced a $10/month soccer skinny bundle with a larger $35 package of more than 55 channels. Before discontinuing the smaller bundle, the company had signed up more than 75,000 subscribers. Financially, FuboTV has raised a total of $75 million since being founded in 2014. The company plans to use new funding to increase marketing spend and develop new products specifically for people watching sports matches and related content. fuboTV offers a sports-first over-the-top bundle of linear sports and entertainment channels, with a strong emphasis on live soccer and multilingual content (English, Spanish and Portuguese). The service has distribution deals with rights holders including Univision Networks, beIN SPORTS, GolTV and Benfica TV, and has recently added entertainment networks such as El Rey Network, Pivot and REVOLT. Launched in January 2015, fuboTV has quickly become the second-largest virtual MVPD in the U.S. and the top provider of live streaming soccer, available across web, mobile and major streaming devices. The company reports more than 40,000 subscribers, a customer base concentrated in millennial males and roughly 30% Latin American. Financially, fuboTV has raised a total of $20.6 million to date, including a $4 million Series A in August 2015 and the $15 million Series B announced here. The Series B proceeds are earmarked to grow the sports-first offering, develop new features, market the service to increase subscribers, and to deepen collaboration with strategic investors. fuboTV is a cloud-based over-the-top (OTT) TV service dedicated to bundling live soccer matches, cable networks, 24-hour club channels, international blocks, series and news into a single subscription platform. Launched in January 2015, the service is available on desktop and devices including Amazon Fire TV, Android, Chromecast, iPad, iPhone, Kindle Fire and Roku. The company carries more than half of the major international soccer leagues through carriage agreements with networks such as beIN Sports, GoITV and Benfica TV, and maintains club partnerships with AJAX Amsterdam, Borussia Dortmund and Everton. fuboTV says it has secured and monetized a substantial amount of live soccer programming and is targeting expanded TV network carriage, platform feature enhancements and content marketing. Financially, the company has raised a total of $5.6 million to date, including the announced Series A. Management plans to use new capital to grow premium sports content, build out technical enhancements to its OTT multi-channel distribution platform and hire key personnel. fuboTV is a cloud-based TV service dedicated to sports that bundles live sports cable networks, 24-hour club channels, international blocks, TV series and news into a single platform for soccer fans. The company has launched an OTT streaming service priced at $6.99/month. The service is available on Roku, Samsung TV, iOS/Android, Amazon Fire TV and via its website. fuboTV closed a $1.6M round of funding to further develop its delivery and sports subscription platform. The article notes the backers remained undisclosed. The piece does not specify the financing instrument beyond a funding round.

Participated · Series B · Oct 2016

Pluto TV operates a free, advertising-supported streaming service featuring over 100 live channels and on-demand content. The service has partnerships with TV networks, movie studios, publishers and digital media companies, and announced more than 40 content deals in the year cited. Pluto TV is available online, on mobile devices and a range of living-room platforms including Samsung Smart TVs, Roku, Apple TV, PlayStation and Xbox. It reaches about 6 million active viewers per month and generates revenue through advertising. The company has been expanding content and distribution, previously using a $30M Series B to help fuel European expansion. Management has emphasized strategic partnerships with platform owners such as Samsung while continuing to grow its content and distribution footprint. Pluto TV replicates a linear TV experience online by providing a TV‑guide‑like interface that lets users tune into hundreds of channels rather than offering on‑demand catalogs. The service targets cord cutters and aggregates content through more than 75 partnerships with networks, studios, publishers and digital media companies including Sky, NBC, A&E, CBSi, Bloomberg and Paramount. It has distribution deals and preinstalls (such as on Xiaomi Mi Box) and is available on Vizio Cast, Roku, Apple TV, Amazon Fire TV and PlayStation 3/4. Pluto TV acquired Berlin‑based Quazer to establish an immediate presence in Germany and now has a team of about 50. The company reports over 5 million monthly active users, up from 500,000 in Q1 2015, and generates revenue through advertising sold via content and device partners and programmatic channels; monetization began less than a year ago and executives declined to disclose detailed financials. It plans to use new funding to invest in product, content and marketing and to expand further into Europe with the goal of becoming a global destination for free television. Pluto TV operates a free, ad-supported video platform that aggregates online and traditional content into themed, 24/7 channels. The service organizes content into categories such as music, sports, news, entertainment, comedy, lifestyle, tech, art & culture, education and kids. The platform features over 100 channels available for free on any device and is accessible via iOS and Android apps, web, and connected-TV options including Amazon Fire TV, Google Nexus Player & Chromecast and Apple AirPlay. Led by co-founder and CEO Tom Ryan, Pluto TV aims to broaden its content offering and expand availability across web, mobile and connected TVs. The company announced it will use the new funding to continue growing the platform and increase distribution and content breadth. Pluto.TV is an online television platform that aggregates web video and programs it into themed TV channels. Led by CEO Tom Ryan and based in Los Angeles, CA, the company combines technology, data and a team of specialist editors to build channels spanning music, news, sports, comedy, entertainment and niche interests. The service is available in the U.S. across iOS, Android, Google Chromecast, Amazon Kindle Fire, Fire TV and the web. Pluto.TV raised $500K in funding from BSkyB (BSY). The investment is intended to give Sky insight into emerging content trends while allowing Pluto.TV to leverage Sky’s experience in packaging and promoting content.

Participated · Equity · Aug 2016

Refinery29 is an online publisher aimed at millennial women that produces lifestyle content, original video (R29 Originals), branded content, and has launched regional sites such as Germany. Founded in 2004 as a local shopping guide, the company expanded into digital products, event marketing and content creation. It reports roughly 27 million monthly unique visitors and a reach of over 225 million users across platforms. The company has been investing in off-site distribution via social platforms and developing original video and branded initiatives to drive audience growth. Refinery29 has raised $125.4 million to date and is prioritizing expansion into new territories and deeper video offerings. Its stated plans include partnering with larger media companies to integrate content into broader programming and grow cross-platform ad sales. Refinery29 is a multi-vertical digital media platform that produces fashion, lifestyle, and storytelling content aimed at young women. Founded in 2010 as a hyperlocal fashion blog, it has grown into a broader media site with more than 25 million monthly uniques and about 250 employees. Co-CEOs Justin Stefano and Philippe Von Borries said Refinery29 exceeded profitability expectations last year. The company plans to invest heavily in original video content—including comedy, documentary, editorial, and scripted—and expand distribution to television and web platforms such as Facebook and Snapchat. Refinery29 recently hired ex‑Vice executive Amy Emmerich to run its video program and will invest in infrastructure, video strategy, content creation, mobile, and social. It also intends to accelerate international expansion with planned offices in the UK and Germany. Refinery29 is a women’s lifestyle site that began in 2004 as a local shopping guide and has expanded editorially to cover fashion, work, entertaining, health, and tech. The site reported $16.6 in revenue in 2012 and draws about 8.5 million unique visitors per month, with roughly 31% of usage coming from mobile. Editorial plans include deeper coverage in beauty, home, and news and a ramp-up of video content. On the product side the company is prioritizing mobile, with a mobile web app redesign slated for December and a feed-based, endless-scroll experience. Commercially, Refinery29 is investing in branded content and content marketing, running dozens of content partnerships (15 in a typical month and over 50 in its busiest month) and reporting successful sponsor campaigns such as H&M festival content. The site blends sponsored posts with regular editorial while typically marking advertorial partnerships with clear banners. Refinery29 is a fashion news and e-commerce site launched in 2005 in New York City that covers trends and independent designers. It operates local editions in six cities: New York City, Los Angeles, San Francisco, London, Chicago and Washington, D.C. The site reports roughly 30 million unique visitors per year. In 2012 the company expected to hit $20 million in revenue, with about a quarter of that from advertising. Refinery29 has been shifting its revenue model away from advertising toward its new online boutiques. Its seed funding round in 2010 included angel investors Ramesh Haridas, Mark Mitchell and Jim Yang. Refinery29 publishes hyperlocal fashion news, trend analysis, profiles of independent designers, beauty content, and local shopping coverage. The site runs its own sample-sale events and plans to expand its city-specific sites beyond New York to Los Angeles, San Francisco, and Chicago. Refinery29 intends to launch an e-commerce offering within the site to sell many of the fashion designs it writes about. The New York-centric site reports about 1 million visits per month (650,000 uniques) and generated $1.4 million in 2009 revenue from events and advertising. The company views e-commerce and local shopping events as key monetization strategies to differentiate from larger online fashion magazines. Competitors cited include Style.com and local city publications such as New York Magazine and 7X7.

Participated · Series A · Jul 2015

Thrive Market operates a membership-based online marketplace that offers organic and natural grocery products at claimed discounts of 25–50% below retail. The service charges a $60 annual membership fee that enables lower pricing and has driven adoption in regions where affordable organic food is less accessible, notably the Midwest and Southeast. Co-CEOs Nick Green and Gunnar Lovelace say the company is expanding beyond retail into digital content such as recipes and healthy-living videos, aiming to become an all-encompassing lifestyle brand. Thrive has also been active in efforts to enable food-stamp purchases online. The business recently raised significant outside capital and says it is focused on growing the business rather than rushing to an IPO. Management has indicated they are open to going public someday but are equally comfortable remaining a profitable private company. Thrive Market is a membership-based online grocery selling natural and organic products, including private-label items. The company launched a dedicated Android app to let users shop from their phones, after previously releasing iOS (which saw over 50,000 installs in its first month and a five-star iTunes rating from 200+ reviews). Members pay $60 per year for access to wholesale prices, and the company reports more than 200,000 paying members. Thrive Market hit a $100 million run-rate early in its second year and recorded nearly $10 million in sales in the most recent month, though it is not yet profitable. The business has grown from 14 employees in November 2014 to nearly 400 and operates two fulfillment centers in Commerce, CA and Batesville, IN, enabling two-day shipping to over 85% of the U.S. Revenue comes from membership fees and private-label product sales. Through its "Thrive Gives" program the company donates one free membership to a low-income family for every paid membership sold; 51% of Thrive Gives families are Android users. Thrive Market is an L.A.-based online membership marketplace that sells curated natural and organic products to health-conscious consumers. Members pay $60/year ($5/month) for access to bulk-priced groceries and household items across food, baby, home, cleaning, and bath categories. Thrive buys products in bulk at wholesale prices and passes savings to members, generating revenue primarily through membership fees which cover operations and fulfillment. The company curates a limited set of best-in-class brands to simplify purchasing and offers educational content to help members learn about healthy living. To expand reach and improve logistics it plans a 275,000 square-foot fulfillment center in Indiana in addition to its existing 40,000 square-foot West Coast center. It has grown to 1 million registered users, more than 100k active members, a 75% trial-to-paid conversion, and is tracking to a $100M revenue run rate in its first year. Thrive also runs social programs, partnering with non-profits to give a free membership to families in need for every paid membership and will add an authentication system to verify students, military families, teachers, and other low-income demographics.

Participated · Series A · Oct 2014

Food52 is a digital hub that combines content, commerce, and community around cooking and home. Its Food52 Shop sells more than 5,000 kitchen and home goods via drop shipment, nearly half of which are exclusive to the brand, and the Shop accounts for 75% of the company's total revenue. E-commerce revenues have averaged 50% year-over-year growth, and paid marketing spend represents only 5% of commerce revenue; the remainder is driven organically by a community of more than 16 million people. In 2018 Food52 launched its direct-to-consumer product line Five Two, which has become the most profitable brand in the Shop. The company plans to use new capital to open a brick-and-mortar flagship, expand the Five Two line, and invest in content, video, product, and engineering teams to support the next phase of growth. Food52 has been recognized four times on Inc.'s 5000 list as one of the fastest-growing private companies in America. Food52 operates a cooking site and a platform that connects people around specific food interests. It offers curated information about food and cooking and sells kitchen and tabletop goods through its shop, Provisions. The company was founded in 2009 by Amanda Hesser and Merrill Stubbs and is based in New York City. Food52 raised $6M in funding and intends to use the proceeds to expand operations and hire new people. The articles do not disclose operating metrics such as revenue or user counts.