With venture capitalists and corporations running out of US-based MCNs to invest in, the focus has shifted to our YouTube-centric multi-channel networks to the south. Upfront Ventures, the original investors in Maker Studios, are sitting pretty on their piles of money now that the company has sold to Disney. But as miners quickly realized back during the Gold Rush, there’s no thing as “striking it rich.” It’s all about striking it richer. And so Upfront Ventures has put their money into MiTú, an MCN geared towards the Latino audiences.
It’s no secret that there is big business in foreign YouTube markets — look at the brand loyalty centered around Psy. Really, the mystery is in which nation’s viability is going to bubble up next. Upfront Ventures thinks the Latin market is where the money is at, and with MiTú’s 40 million combined subscribers across its channels and over 400 million monthly views, it seems like a pretty smart bet.
The company has raised $10 million for the MCN based out of Culver City, Calif. and share a stake in the company with the Chernin Group who bought in and raised $3 million for MiTú in 2012. Really, much of the V.C. game seems to be taking a company who who be graded at junk bond status, splashing some makeup on it, and selling it to overly eager corporations whose shareholders demand headline-grabbing acquisitions. Being a venture capitalist these days seems to be little more than acting like a house flipper on a much bigger level.
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