welcome to segment two of show 16 of hip mojo now we’re going to talk about VCS
mojo now we’re going to talk about VCS
mojo now we’re going to talk about VCS and why they don’t invest some content
and why they don’t invest some content
and why they don’t invest some content we talked about this a little bit last
we talked about this a little bit last
we talked about this a little bit last week we didn’t really get into it why do
week we didn’t really get into it why do
week we didn’t really get into it why do you think these shun content all right I
you think these shun content all right I
you think these shun content all right I know you’re gonna have a lot more to say
know you’re gonna have a lot more to say
know you’re gonna have a lot more to say about this if only because I
about this if only because I
about this if only because I oversimplify everything I’m a glutton
oversimplify everything I’m a glutton
oversimplify everything I’m a glutton for brevity but I think why bc’s don’t
for brevity but I think why bc’s don’t
for brevity but I think why bc’s don’t invest in content is content is an
invest in content is content is an
invest in content is content is an oversaturated market place we kind of
oversaturated market place we kind of
oversaturated market place we kind of were hinting at this when you’re talking
were hinting at this when you’re talking
were hinting at this when you’re talking about newspapers there’s content
about newspapers there’s content
about newspapers there’s content everywhere it’s really easy to produce
everywhere it’s really easy to produce
everywhere it’s really easy to produce in disseminate it’s very challenging to
in disseminate it’s very challenging to
in disseminate it’s very challenging to build an audience and I think from an
build an audience and I think from an
build an audience and I think from an investor’s standpoint that makes it a
investor’s standpoint that makes it a
investor’s standpoint that makes it a tougher call one why would you invest in
tougher call one why would you invest in
tougher call one why would you invest in a marketplace that’s already so
a marketplace that’s already so
a marketplace that’s already so competitive and two how can you actually
competitive and two how can you actually
competitive and two how can you actually be certain that the specific product
be certain that the specific product
be certain that the specific product that you’re investing in is going to be
that you’re investing in is going to be
that you’re investing in is going to be enough to out-compete you know all the
enough to out-compete you know all the
enough to out-compete you know all the Sharks are piranhas swimming out there
Sharks are piranhas swimming out there
Sharks are piranhas swimming out there okay so I’m going to run through very
okay so I’m going to run through very
okay so I’m going to run through very quickly five quick reasons why because
quickly five quick reasons why because
quickly five quick reasons why because we get this question a lot and it’s
we get this question a lot and it’s
we get this question a lot and it’s funny I get a lot of like entrepreneurs
funny I get a lot of like entrepreneurs
funny I get a lot of like entrepreneurs emailing me saying all your content
emailing me saying all your content
emailing me saying all your content guide you want to invest in my content
guide you want to invest in my content
guide you want to invest in my content business and I’m like no it’s fine i’m
business and I’m like no it’s fine i’m
business and I’m like no it’s fine i’m fully invested in contact you know it’s
fully invested in contact you know it’s
fully invested in contact you know it’s fine i got i get out i sit on the couch
fine i got i get out i sit on the couch
fine i got i get out i sit on the couch i get up i got content falling out of my
i get up i got content falling out of my
i get up i got content falling out of my I of my pants so it’s fine one I think
I of my pants so it’s fine one I think
I of my pants so it’s fine one I think it’s because VCS or backgrounds are
it’s because VCS or backgrounds are
it’s because VCS or backgrounds are intact so you know the media executives
intact so you know the media executives
intact so you know the media executives they make a little bit of money but it’s
they make a little bit of money but it’s
they make a little bit of money but it’s not like they started companies and sold
not like they started companies and sold
not like they started companies and sold for five billion then took that money
for five billion then took that money
for five billion then took that money start a vc fund and invested in content
start a vc fund and invested in content
start a vc fund and invested in content doesn’t work like that but in tech a lot
doesn’t work like that but in tech a lot
doesn’t work like that but in tech a lot of the guys who were like at the intels
of the guys who were like at the intels
of the guys who were like at the intels and the Oracles and you know microsoft’s
and the Oracles and you know microsoft’s
and the Oracles and you know microsoft’s and the googles well they got a lot of
and the googles well they got a lot of
and the googles well they got a lot of money because there was a different
money because there was a different
money because there was a different organizational structure equity they
organizational structure equity they
organizational structure equity they made money they are now VCS that’s their
made money they are now VCS that’s their
made money they are now VCS that’s their comfort zone none of them got content to
comfort zone none of them got content to
comfort zone none of them got content to there is a perception fair to some
there is a perception fair to some
there is a perception fair to some extent that it’s a content as a hits
extent that it’s a content as a hits
extent that it’s a content as a hits business it’s not like you’re going to
business it’s not like you’re going to
business it’s not like you’re going to basically write a software and then you
basically write a software and then you
basically write a software and then you could print a million copies of that
could print a million copies of that
could print a million copies of that sell it and then you upgrade it and you
sell it and then you upgrade it and you
sell it and then you upgrade it and you support it with content I mean even I’m
support it with content I mean even I’m
support it with content I mean even I’m a Content guy but I’ll say it look at
a Content guy but I’ll say it look at
a Content guy but I’ll say it look at Lorne Michaels he leaves SNL smell goes
Lorne Michaels he leaves SNL smell goes
Lorne Michaels he leaves SNL smell goes in the toilet he comes back it has a
in the toilet he comes back it has a
in the toilet he comes back it has a Renaissance so you could argue that you
Renaissance so you could argue that you
Renaissance so you could argue that you know a tech company you could basically
know a tech company you could basically
know a tech company you could basically take Larry Page and Sergey Brin bring
take Larry Page and Sergey Brin bring
take Larry Page and Sergey Brin bring him out in the shack and put a bullet in
him out in the shack and put a bullet in
him out in the shack and put a bullet in their head god forbid and you could
their head god forbid and you could
their head god forbid and you could still bring in an outsider to run Google
still bring in an outsider to run Google
still bring in an outsider to run Google but I’m not
but I’m not
but I’m not sure that you know DreamWorks works if
sure that you know DreamWorks works if
sure that you know DreamWorks works if okay I think finally a great example
okay I think finally a great example
okay I think finally a great example maybe Facebook but not goo I would say
maybe Facebook but not goo I would say
maybe Facebook but not goo I would say the opposite but that’s next week so I
the opposite but that’s next week so I
the opposite but that’s next week so I totally think it’s the Opera are you
totally think it’s the Opera are you
totally think it’s the Opera are you well you know we know what the segment
well you know we know what the segment
well you know we know what the segment next week is three is this notion of
next week is three is this notion of
next week is three is this notion of defense ability and the IP I think with
defense ability and the IP I think with
defense ability and the IP I think with open source software and cheap hardware
open source software and cheap hardware
open source software and cheap hardware and the fact that you need like five
and the fact that you need like five
and the fact that you need like five thousand dollars to build like a
thousand dollars to build like a
thousand dollars to build like a kick-ass product now I think I p sorry I
kick-ass product now I think I p sorry I
kick-ass product now I think I p sorry I think Tech is less defensive now than
think Tech is less defensive now than
think Tech is less defensive now than content I think you can’t duplicate the
content I think you can’t duplicate the
content I think you can’t duplicate the watch module catalog in like a weekend
watch module catalog in like a weekend
watch module catalog in like a weekend but you can build like a facebook
but you can build like a facebook
but you can build like a facebook replica in like a weekend doesn’t mean
replica in like a weekend doesn’t mean
replica in like a weekend doesn’t mean you’re going to grow it and distribute
you’re going to grow it and distribute
you’re going to grow it and distribute it I get that but I just think
it I get that but I just think
it I get that but I just think historically there’s this concept that
historically there’s this concept that
historically there’s this concept that tech is more defensive and the IP is
tech is more defensive and the IP is
tech is more defensive and the IP is more airtight but you look now that you
more airtight but you look now that you
more airtight but you look now that you know patents are handed out for jokes
know patents are handed out for jokes
know patents are handed out for jokes there’s lawsuits you know so I’m just
there’s lawsuits you know so I’m just
there’s lawsuits you know so I’m just saying times have changed and we’re
saying times have changed and we’re
saying times have changed and we’re going to get on that but i’m not sure
going to get on that but i’m not sure
going to get on that but i’m not sure vc’s get that time has changed for is
vc’s get that time has changed for is
vc’s get that time has changed for is this concept of scale it’s true without
this concept of scale it’s true without
this concept of scale it’s true without a doubt that you could scale tech
a doubt that you could scale tech
a doubt that you could scale tech distribution aggregation a lot easier
distribution aggregation a lot easier
distribution aggregation a lot easier than you could scale content we’ve
than you could scale content we’ve
than you could scale content we’ve scaled content production and to some
scaled content production and to some
scaled content production and to some extent distribution despite the odds but
extent distribution despite the odds but
extent distribution despite the odds but now that I’m six years into video
now that I’m six years into video
now that I’m six years into video content and 12 years into content
content and 12 years into content
content and 12 years into content including my previous gig I get it that
including my previous gig I get it that
including my previous gig I get it that it’s just so much easier if your
it’s just so much easier if your
it’s just so much easier if your distributor the problem again and
distributor the problem again and
distributor the problem again and everything as a caveat the problem is in
everything as a caveat the problem is in
everything as a caveat the problem is in distribution you have to be number one
distribution you have to be number one
distribution you have to be number one or number two to quote Jack Welch in
or number two to quote Jack Welch in
or number two to quote Jack Welch in content you just have to be good and
content you just have to be good and
content you just have to be good and good is very subjective five I think
good is very subjective five I think
good is very subjective five I think it’s this irony up if you’re a Content
it’s this irony up if you’re a Content
it’s this irony up if you’re a Content exact and let’s say you work five
exact and let’s say you work five
exact and let’s say you work five whatever 15 years at a media company
whatever 15 years at a media company
whatever 15 years at a media company let’s say you made serious coin and
let’s say you made serious coin and
let’s say you made serious coin and you’re sitting on 10 to 25 million
you’re sitting on 10 to 25 million
you’re sitting on 10 to 25 million dollars if you now say you want to
dollars if you now say you want to
dollars if you now say you want to invest as a former content or media
invest as a former content or media
invest as a former content or media executive you’ve been disrupted by tech
executive you’ve been disrupted by tech
executive you’ve been disrupted by tech projects so you don’t want to then go
projects so you don’t want to then go
projects so you don’t want to then go and invest in content because you’ve
and invest in content because you’ve
and invest in content because you’ve been around super premium content at a
been around super premium content at a
been around super premium content at a traditional media company you’re not
traditional media company you’re not
traditional media company you’re not going to say I’m going to go and fund
going to say I’m going to go and fund
going to say I’m going to go and fund into a sort of new be content company
into a sort of new be content company
into a sort of new be content company you’re going to say what are the tech
you’re going to say what are the tech
you’re going to say what are the tech companies that destroyed my business
companies that destroyed my business
companies that destroyed my business yeah I’m gonna go fund those right so
yeah I’m gonna go fund those right so
yeah I’m gonna go fund those right so this is like the reality 5i think
this is like the reality 5i think
this is like the reality 5i think reasons why they just don’t invest in
reasons why they just don’t invest in
reasons why they just don’t invest in content but there is a little bit of a
content but there is a little bit of a
content but there is a little bit of a sort of silver lining which is this
sort of silver lining which is this
sort of silver lining which is this right now the VC industry is supposedly
right now the VC industry is supposedly
right now the VC industry is supposedly if you ask even the best bc is broken
if you ask even the best bc is broken
if you ask even the best bc is broken and it’s true return
and it’s true return
and it’s true return suck for the amount of risk they take
suck for the amount of risk they take
suck for the amount of risk they take return suck and a lot of it is like oh
return suck and a lot of it is like oh
return suck and a lot of it is like oh we’ve got a pivot as VCS ourselves and
we’ve got a pivot as VCS ourselves and
we’ve got a pivot as VCS ourselves and but they’re pivoting in the context of
but they’re pivoting in the context of
but they’re pivoting in the context of size saying instead of raising a 500
size saying instead of raising a 500
size saying instead of raising a 500 million dollar fund and looking for you
million dollar fund and looking for you
million dollar fund and looking for you know nine bombs that go nowhere and the
know nine bombs that go nowhere and the
know nine bombs that go nowhere and the one YouTube 1.6 billion or the one skype
one YouTube 1.6 billion or the one skype
one YouTube 1.6 billion or the one skype you know massive hit they’re realizing
you know massive hit they’re realizing
you know massive hit they’re realizing that they need to invest smaller funds
that they need to invest smaller funds
that they need to invest smaller funds like first round capital union square
like first round capital union square
like first round capital union square ventures etc etc I’m going to throw it
ventures etc etc I’m going to throw it
ventures etc etc I’m going to throw it out there that say that there is also
out there that say that there is also
out there that say that there is also going to be a need to pivot not all of
going to be a need to pivot not all of
going to be a need to pivot not all of them some of them into contents and
them some of them into contents and
them some of them into contents and media funds to me a vc fund that funds
media funds to me a vc fund that funds
media funds to me a vc fund that funds in digital media that still means to
in digital media that still means to
in digital media that still means to them that we fund like ad platforms that
them that we fund like ad platforms that
them that we fund like ad platforms that touch on media i do think though that
touch on media i do think though that
touch on media i do think though that there is going to be content and two
there is going to be content and two
there is going to be content and two reasons 1i think in the last year aol’s
reasons 1i think in the last year aol’s
reasons 1i think in the last year aol’s bought five men go viral huffington post
bought five men go viral huffington post
bought five men go viral huffington post on TechCrunch so all content or video
on TechCrunch so all content or video
on TechCrunch so all content or video related yes some aggregation but it’s
related yes some aggregation but it’s
related yes some aggregation but it’s still content and video those are big
still content and video those are big
still content and video those are big exits that’s five hundred million
exits that’s five hundred million
exits that’s five hundred million dollars worth of exits and the VCS of
dollars worth of exits and the VCS of
dollars worth of exits and the VCS of notice and to YouTube signed initially
notice and to YouTube signed initially
notice and to YouTube signed initially it was report to be a hundred million
it was report to be a hundred million
it was report to be a hundred million but mark Schuster was a VC who basically
but mark Schuster was a VC who basically
but mark Schuster was a VC who basically on a panel I was on set it’s 250 million
on a panel I was on set it’s 250 million
on a panel I was on set it’s 250 million dollars that they’ve signed that’s a lot
dollars that they’ve signed that’s a lot
dollars that they’ve signed that’s a lot of money so i think these have taken
of money so i think these have taken
of money so i think these have taken notice and discussions I’ve had at
notice and discussions I’ve had at
notice and discussions I’ve had at conferences and in person privately
conferences and in person privately
conferences and in person privately trust me there are VCS that are setting
trust me there are VCS that are setting
trust me there are VCS that are setting up these content funds as we speak they
up these content funds as we speak they
up these content funds as we speak they may not have the expertise and I don’t
may not have the expertise and I don’t
may not have the expertise and I don’t know how it’s going to fare but there’s
know how it’s going to fare but there’s
know how it’s going to fare but there’s definitely there’s two things going on
definitely there’s two things going on
definitely there’s two things going on that touch on to the content and video
that touch on to the content and video
that touch on to the content and video space one is these VCS that are finally
space one is these VCS that are finally
space one is these VCS that are finally starting to set up these funds to look
starting to set up these funds to look
starting to set up these funds to look at content and the second one our
at content and the second one our
at content and the second one our existing content companies that have
existing content companies that have
existing content companies that have been around for five to ten years that
been around for five to ten years that
been around for five to ten years that are going to start to do some kind of
are going to start to do some kind of
are going to start to do some kind of roll up and that’s actually the theme of
roll up and that’s actually the theme of
roll up and that’s actually the theme of my next article on TechCrunch the video
my next article on TechCrunch the video
my next article on TechCrunch the video the video roll up play we’re going to
the video roll up play we’re going to
the video roll up play we’re going to take a short break it’s just like rented
take a short break it’s just like rented
take a short break it’s just like rented our we’re going to take a short break
our we’re going to take a short break
our we’re going to take a short break and we’re going to come back with
and we’re going to come back with
and we’re going to come back with lightning round
”
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