The world has modified dramatically since Might 2019 once we final surveyed enterprise capitalists about the trends they were seeing in media, entertainment and gaming.
Since then, COVID-19 and the ensuing bodily distancing measures have created loads of demand for firms serving to to tell and entertain us as we’re caught at residence. On the similar time, there’s a dramatic discount in advert spending, making it tougher to monetize that shopper consideration.
So we checked in a wide range of high VCs in regards to the new panorama, the place they’re investing and how much recommendation they’re giving their portfolio firms.
Not all of them make investments immediately in what (paraphrasing Betaworks’ Matt Hartman) we would name media media — the businesses whose enterprise fashions revolve round content material creation and promoting — however every of those buyers are backing startups seeking to change the best way we keep related and entertained.
Right here’s who we surveyed:
- Kevin Zhang (Accomplice, Upfront Ventures)
- Pär-Jörgen (PJ) Pärson (Basic Accomplice, Northzone)
- Vasu Kulkarn (Accomplice, Courtside Ventures)
- MG Siegler (Basic Accomplice, GV)
- Jana Messerschmidt (Accomplice, Lightspeed Enterprise Companions)
- Matthew Hartman (Accomplice, Betaworks Ventures)
- Gigi Levy-Weiss (Managing Accomplice, NFX)
The consensus? You’ll be able to’t depend on the advert enterprise to recuperate within the subsequent few months, however there are nonetheless alternatives for startups exploring new codecs and new enterprise fashions. And there’s nonetheless loads of pleasure about gaming and esports.
You’ll be able to learn their full responses, evenly edited, under.
Kevin Zhang, Upfront Ventures
What (if any) media tendencies are nonetheless thrilling you from an investing perspective?
Stay and interactive codecs, particularly shorter kind, proceed to be very thrilling, made much more evident on this time of shelter-in-place. What has labored in China and broader Asia has not but translated into explosive success within the West. As fascinating as movie star dwell broadcasts are from their properties, the dearth of actual interplay and participation options hampers long-term engagement and doesn’t make up for the dearth of manufacturing high quality.
Trendy content material manufacturing know-how is required to push each manufacturing and dwell ops price down whereas enabling extra interactive and fascinating codecs. Sport engines are one instance, there’s after all the Travis Scott concert that just happened in Fortnite constructed on the Unreal engine, however that 15-minute, pre-rendered present took months to create, we’re solely simply scratching the floor of what’s attainable.
Certainly one of our investments on this house is Tellie for live-action codecs, one other is The Wave for rendered, dwell codecs, and we proceed to search for nice mixtures of tech and media expertise innovating on new codecs.
Talking of gaming, multiplayer video games proceed to develop and develop exponentially, there’s a lot to unpack in fashionable titles from new favourite Animal Crossing to classics like World of Warcraft to indie hits like For the King. All of them have social cooperation as a core a part of the sport loop and design. I’d like to see extra groups engaged on cooperative play and simply total a broader variety in multiplayer experiences past purely aggressive ones.
— to techcrunch.com