19 media startups that top VCs say are poised to take off in 2020, as the pandemic reshapes the industry
Total funding: $9.4 million, according to Crunchbase
What it does: Blavity is a media and events company focused on Black culture.
Why VCs like it: Blavity, founded in 2014 after the shooting of Michael Brown, has been telling stories the mainstream media has largely overlooked, according to Heather Hartnett, founding partner of Human Ventures, which is not invested in Blavity.
Blavity has also diversified its revenue across five brands that include more lifestyle-focused properties and events businesses, which CEO Morgan DeBaun recently told TechCrunch allows Blavity to cover crucial but non-advertiser-friendly topics, like violence against Black bodies.
"They've become a trusted source for culture and politics at a time where there is widespread misinformation," Hartnett said. "It's hard to make money in media these days but I can hardly think of a more well-positioned media brand than Blavity at this moment in time."
Total funding: $65.2 million, according to Crunchbase
What it does: Cameo is a three-year-old marketplace where people can buy personalized video messages from celebrities.
Why VCs like it: Investor Jana Messerschmidt, a partner at Lightspeed, said usage of Cameo is surging during the pandemic as celebrities look for alternative ways to make money and connect with fans, and audiences seek entertainment in lockdown.
Cameo told Fast Company in late March that talent sign-ups had climbed 160% and bookings had risen 83% since the start of the month.
"If you want to see true consumer delight, just check out the fan reaction videos — it is rare to see a product produce so much joy," Messerschmidt said.
Total funding: $1.5 million, according to PitchBook
What it does: Founded in 2019, Circle is a platform that helps creators manage their online communities, including powering forums on creators' own platforms for things like online courses, or automating direct messages to members.
Why VCs like it: Circle's community platform is geared toward what Rooks Nest Ventures founder and managing partner Michael Sackler called the "passion economy," which he said is thriving as people pursue hobbies at home and search for community amid the pandemic.
Sackler, who is not invested in Circle, said he's interested in the startup because it helps creators — be it hobbyists who sell their crafts online, home chefs trying to make cash on the side, or YouTube influencers whose audiences are their main businesses — build and monetize their skills.
"You're seeing an uptick in that area, whether it's people wanting to be YouTubers or selling on Etsy," Sackler said. "But there are limited platforms for people to connect with their communities."
The platform, which can be integrated with other creator stacks, is currently in a private beta with a range of entrepreneurs and creators including Pat Flynn, David Perell, Tiago Forte, Kevin Fremon, Makerpad, and Anne-Laure Le Cunff.
The company said the platform will launch fully in three to four weeks.
Total funding: $2.8 million, according to the company
What it does: Encantos is a four-year-old education and entertainment company for kids.
Why VCs like it: Demand for edtech has exploded in the past few months amid stay-at-home orders and schools shifting to remote learning, according to Encantos investor Monique Woodard.
Against this backdrop, Encantos launched in June a new app for its Canticos media brand, which teaches preschool-aged kids bilingual, Spanish and English skills through nursery rhymes, videos, and other tools.
"Parents from all backgrounds are increasingly interested in having their kids learn bilingual language skills," Woodard said. "The Encantos team is stepping right into this cultural zeitgeist."
The company also has brands that teach kids about topics like food and cultures around the world.
Encantos hits on two current trends — "the increased need for at-home education and multicultural, inclusive storytelling for children," said another investor, Heather Hartnett, founding partner of Human Ventures.
Total funding: $96.3 million, according to Crunchbase
What it does: An online platform for at-home cooking that curates recipes, products, and a community around the kitchen.
Why VCs like it: Food52 has been publishing recipes and food-related content for more than a decade. Investor Mike Kerns, a managing partner at TCG Capital Management, said the company is poised to take off now as people spend more time in their kitchens due to lockdown orders that have restricted restaurant dining.
"The reality is people are cooking more at home," Kerns said. "They are investing more in understanding new types of cooking and cuisines. And they're caring more about where the food is coming from."
Kerns is also encouraged by Food52's growing line of branded kitchen and home products, given that people are visiting department stores and the usual home-goods retailers less.
"We find it a unique company in that it's a true content and commerce company," Kerns said.
Total funding: More than $1 million, according to the company
What it does: A NY-based subscription media company that works with journalists and illustrators around the world to tell stories of South Asia and its people globally.
Why VCs like it: The Juggernaut has attracted investments from backers including Y Combinator, Precursor Ventures, and Twitch founder Kevin Lin. Monique Woodard of Cake Ventures, which is not invested in the company, said she has an eye on the startup because of the large potential audience for coverage of South Asia and the South Asian diaspora.
The company, which started in 2018 from an email newsletter by founder Snigdha Sur, said its paid subscribers have grown 20%-30% month over month for the past seven months.
"I think there's this big opportunity for the company to go deep into verticals around South Asian culture and hit everything from food to Bollywood to parenting," said Woodard, formerly of 500 Startups and Lightspeed. "There are 1.8 billion South Asians in the region and 5.4 million in the US, pointing to a massive audience both in South Asia and across the diaspora. I'm interested to see how much of that The Juggernaut can continue to attract and what they can build on top of that initial audience."
Total funding: $30,000, according to Crunchbase
What it does: KweliTV is a subscription-based streaming-video service devoted to global Black culture.
Why VCs like it: Christie Pitts, general partner at Backstage Capital, said kweliTV is "proving out that diverse audiences need content and there's a market there for it."
KweliTV, founded by DeShuna Spencer, streams films, documentaries, kids shows, and other programming from Black creators around the world.
It also recently started programming a free, ad-supported streaming channel that has landed distribution through Comcast's Xfinity X1 and Flex platforms, as well as kweliTV's own platforms.
"Recent events have really underscored the need for more content from Black filmmakers and creators," said Pitts, who is not invested in the startup. "KweliTV is created for Black consumers but goes far beyond just the US and has a global approach."
Total funding: $3.5 million, according to Crunchbase
What it does: MSCHF is the brand behind some of the cynical and viral stunts, stories, and products that have recently spread throughout the internet, such as the online game with YouTube star Jimmy Donaldson, a.k.a. MrBeast, that resulted in four people keeping their fingers on an app for more than 70 hours.
Why VCs like it: MSCHF is direct-to-consumer, cross-platform, lifestyle-focused, and has shown it can sell out products, according to Mike Kerns, a managing partner at The Chernin Group's consumer-investment arm, TCG Capital Management.
"They're ridiculously creative and thoughtful about digital distribution that is organic and not paid," said Kerns, who is not invested in MSCHF. "It fits a lot of themes that we're excited about."
Total funding: $994.7 million, according to Crunchbase
What it does: Peloton is an at-home fitness company that offers livestream and on-demand fitness classes to its subscribers, many of whom use the company's custom bikes and treadmills.
Why VCs like it: Peloton's stock has skyrocketed this year as demand for home fitness equipment has jumped among at-home consumers.
One of the company's major selling points — beyond its hardware — is its roster of fitness instructors who have developed massive followings on both Peloton's app and social media platforms in general.
The company hires popular fitness instructors to stream classes to thousands of users in the US, UK, Canada, and Germany, with 21 cycling trainers and an additional 13 instructors who teach treadmill and yoga classes.
"You might look at it as an exercise or fitness company, but it's so much more than that," said Marlon Nichols, managing general partner at MaC Venture Capital, which is not invested in Peloton. "They're producing content. The instructors are creating playlists and are becoming rock stars."
Total funding: $96 million, according to Crunchbase
What it does: PlayVS is a software startup that organizes high school and collegiate gaming competitions across the country.
Why VCs like it: Investor Marlon Nichols, managing general partner at MaC Venture Capital, said PlayVS has the opportunity to be king-maker for game developers who want a game to gain visibility among high school and college students.
PlayVS supports esports competitions for more than 13,000 schools, and has worked with the National Federation of High Schools to establish varsity programs in 18 states.
"For every professional sport, there's a training ground," Nichols said. "For esports and the way that the sport is growing in the professional ranks, there's going to be more and more people wanting to be esports athletes, and there isn't a set training path or a platform that powers the amateurs that leads into the professional ranks. And so that is essentially what PlayVS has become, and that makes it super important."
Total funding: $1.75 billion, according to Crunchbase
What it does: Quibi is a subscription-video service for smartphones that offers programming from Hollywood studios with episodes that are under 10 minutes. The app was designed for on-the-go viewing.
Why VCs like it: Quibi stumbled out of the gate during its April launch. But investor Anis Uzzaman, general partner and CEO of Pegasus Tech Ventures, thinks Quibi is going to be a slow-but-steady powerhouse coming out of the pandemic.
The company has a new slate of content on the way from big stars like Kevin Hart and Andy Cohen, and is making another push for its first round of programming, which Uzzaman believes can still take off. Quibi has also made changes under the hood to adjust to the current stay-at-home environment, such as enabling Airplay to allow viewing of the mobile app from TV sets.
Uzzaman said Quibi will get another chance to prove itself when the active lifestyles it was built for return.
"It's a gradual work in progress," Uzzaman said. "But things are going to change and our way of life I think will force us to look for content that is designed for our lifestyle, and that's what the original intent was."
Total funding: $1.6 million, according to Crunchbase
What it does: Radical is a software company that allows users to convert their own live-action motion into 3D animated video content. The company describes its technology as "AI-powered 3D motion capture," converting human movement into animation by relying on computer vision rather than requiring special hardware or a motion-detecting body suit.
Why VCs like it: Benjamin Grubbs, founder and CEO of Next 10 Ventures (an investment firm that focuses on creator-oriented companies), listed Radical as a non-portfolio company that's offering technology that can help digital creators enhance their content and storytelling through animation.
The company's software, which doesn't need some of the more expensive hardware typically required to create motion-based animations, is more accessible for video producers who may not have a background in animation.
Total funding: $335.7 million, according to Crunchbase
What it does: Roblox is an online-entertainment platform where users can build and share games.
Why VCs like it: Shanti Bergel, managing director of Transcend Fund, said Roblox is what the gaming industry jokingly calls a "10-year overnight success story." Roblox has been around for a while in various forms. But its latest iteration — an online platform where users can build and share games — is having a moment now, especially among kids who are also picking up coding skills through the platform.
"It's really a training ground for the game developers of the future in a lot of ways," said Bergel, who is not invested in the company. "Some of them are building real businesses on it."
Roblox said in March that it reached 100 million monthly active users, a new milestone for the company.
"Roblox is exposing kids (40% of whom are female) to basic coding principles," said Jana Messerschmidt, a partner at Lightspeed, which is not invested in the company. "It is unclear whether kids can safely return to school this fall and many are dealing with an enormous amount of COVID-related stress. I'm glad that these kids have 'metaverses' such as Roblox."
Total funding: $4 million, according to Crunchbase
What it does: Seed&Spark is a crowdfunding platform for filmmakers and creators, which recently launched a platform for virtual film festivals and other events.
Why VCs like it: Christie Pitts, general partner of Backstage Capital, which is invested in Seed&Spark, said the startup responded swiftly when the coronavirus pandemic threatened festival season, and launched in May a new online platform to power virtual festivals, screenings, and other events for the independent creator community.
Seed&Spark, which earns revenue from its crowdfunding, events, and festivals businesses, also has an inclusive-workplace culture program that addresses topics like racial justice through film, which Pitts said is particularly relevant right now.
"I'm excited about Seed&Spark because I feel like the team is really plugged into the media landscape," Pitts said.
Total funding: Unannounced seed round
What it does: Shuffle's app allows users to share podcast content more easily by enabling fans to grab snippets from long-form podcasts and create short-form video clips.
Why VCs like it: Podcasting has continued to surge in 2020 as companies like Spotify have made strategic acquisitions and exclusivity deals with podcasters in order to build a business around the category.
Dino Becirovic, a principal at Index Ventures, nominated the podcast startup Shuffle because of the app's unique approach to helping users discover and share podcasts, including creating shareable highlight videos. Index Ventures is not invested in Shuffle.
Total funding: Undisclosed (Raised a seed round in February 2019)
What it does: Stage TEN offers a software platform for digital creators to make high-quality live video content with broadcast TV-style features like graphic overlays, watermarks, and lower-thirds. The company recently introduced the ability to integrate transactable shopping overlays into livestreams through its Shopify-integrated app Rozy.
Why VCs like it: It's been a big year for live video as social platforms like Instagram, YouTube, Twitch, and TikTok have seen livestreaming take off among creators and stuck-at-home users.
Stage TEN, which offers creators a tool kit to produce live videos that can run on any social platform, saw over 300% growth in its platform usage since mid-March, according to Benjamin Grubbs, founder and CEO of Next 10 Ventures, which invested in the company.
The company's live-video tools have been used by YouTube star MrBeast, the actor John Krasinksi for his "Some Good News" show, and the education platform Khan Academy.
"For years they've been supporting creators on multiple platforms and enhancing their live streams," Grubbs said. "This year, with COVID-19, a lot of Hollywood productions shut down. People that weren't actually producing live streams in some ways were kind of forced or nudged that way because of the circumstances, and now they actually have the adoption and the familiarity."
"Stage TEN has been well positioned to capitalize on the rise of live video productions, and with their launch of Rozy in June, they are set to be a top player in the burgeoning space of live video transactional ecommerce," Grubbs said.
Total funding: $2.6 million, according to Crunchbase
What it does: Treehouse Games is a new game studio that's developing collaborative games.
Why VCs like it: Transcend Fund managing director Shanti Bergel said the most exciting startups in gaming today are widening the audience for the sector. Treehouse Games is part of that trend.
The gaming studio, cofounded by Michael Chu and Ryan Sullivan, is building games in the vein of The Sims and Farmville that create online communities, said Bergel, who is invested in the company.
"They're working with a canvas that is better and a little more nuanced than the things that have come before them," said Bergel, who also worked on The Sims franchise earlier in his career at gaming company Electronic Arts.
Bergel said to watch Treehouse Games in the next two to three years, as its initial slate of games gets off the ground.
Total funding: $37.5 million, according to Crunchbase
What it does: Triller is a US-based social-video platform where users can create music videos that look professional with the help of artificial intelligence. It's a competitor to TikTok.
Why VCs like it: Triller is benefiting from the international scrutiny TikTok is facing over its ties to China, according to Anis Uzzaman, general partner and CEO of Pegasus Tech Ventures, who is not invested in the company but says he hopes to be soon. Triller said it's been growing in India since TikTok was banned there, which helped push its user base to 50 million monthly active users in July.
Triller has also been pursuing investments from artists like Snoop Dogg and The Weeknd, and striking partnerships to bring talent like Alicia Keys, Cardi B, and Eminem to the platform.
"It comes with very nice blend of partnerships with top artists and media houses," Uzzaman said. "That gives us confidence. They're going a different route than TikTok, which has been relying on social impact."
Total funding: $2.2 million, according to the company
What it does: 12traits is a two-year-old gaming analytics company that builds psychographic profiles of gamer cohorts.
Why VCs like it: The gaming sector has been heating up as it moves beyond niche audiences and into the mainstream thanks to mobile games and other developments.
Game studios are trying to learn more about their audiences. And 12traits investor Michael Sackler, the founder and managing partner of Rooks Nest Ventures, thinks the startup can help by providing data that tries to make sense of what motivates different gamers and why they make certain choices.
Sackler said 12traits has roughly 30 clients in the gaming industry.
"They've just found their product market fit and tearing through the gaming space," Sackler said.