Electrify Video Partners raises $85M from Capital D for YouTube channel investment

Capital D is holding a "significant minority stake."
Electrify Video Partners raises $85M from Capital D for YouTube channel investment

This week media startup Electrify Video Partners announced on YouTube that it has successfully raised $85 million in funding from private equity firm Capital D. 

Founded in 2021, Electrify Video Partners is a media startup specialising in YouTube content investment and acquisition. It invests to help content providers scale their content to other platforms and helps monetise existing content while developing new revenue schemes. It also buys some channels outright. 

.Since its foundation in 2021, Electrify has invested in 5 channels totalling more than 30 million subscribers. with over 10 billion lifetime views, across several different genres including the well-known popular science YouTube channels, Veritasium and Astrum and the Lego-building channel SpitBrix.

According to Tubefilter, funding amounts range from “several hundred thousand dollars to many millions.”

The company raised $50 million in February this year. 

Internet-first content creation is usurping traditional media

According to co-CEO Ian Shepherd, the new capital injection will be earmarked for further YouTube channel investment and acquisitions. 

When you consider that comparable US brand Spotter has raised $230.6 million since its founding in 2019, and entertainment company Moonbug, who helps kids programs on YouTube expand to other channels, has raised $265 million, it becomes evident that the era of investment in subscriber content is only set to increase.

A swift M&A in the cards? 

Capital D is the company’s first institutional equity investment. It also acquired a “significant minority stake” in Electrify. This means it will continue to work with the company to acquire more channels and expand the business.

Capital D invests in “disruptive, fast-growing businesses”. It asserts:

“We invested in Electrify because it is an early consolidator of YouTube channels, bringing a highly differentiated approach to investment and channel growth.

The opportunity we see is to fuel Electrify’s global growth, turning it into a scaled, premium digital content business.”

Out of its eight investments, four have successfully exited and it acquired UK startup Phrasee in 2022.

As it expands its portfolio with Electrify Video Partner, the question of a potential future M&A arises. The company's track record suggests that strategic moves may be on the horizon.

Lead image: Electrify Video Partners. Photo: Uncredited.

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