Jellysmack, which works with YouTube creators to expand onto new platforms like Snapchat and Facebook, is taking its relationships to the next level.
Backed with $500 million in capital, it is launching a new program to license the back catalogs of “accomplished” YouTube creators for up to five years, it says. Creators won’t give up any equity in their IP, brands, or future video ventures, says Jellysmack, which will collect YouTube ad revenues during the licensing period.
It’s worth noting that a competitor called Spotter, which launched in 2019, has a comparable business model. Spotter has invested roughly $300 million to date to temporarily license the back catalogs of creators like MrBeast, Dude Perfect, and Like Nastya. It forged a $125 million licensing deal with Canadian multi-platform network BBTV in October.
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Jellysmack says it will harness its proprietary A.I. tech to suggest potential investments, and then offer lump sums upfront – ranging from $50,000 to $50,000,000 per transaction. This gives creators a cash infusion to take their businesses to the next level, Jellysmack says, including content expenses, hiring new team members, securing studio spaces, or launching off-platform businesses. Interested parties can apply here.
“Unlike a purely financial partner, we think like creators and understand what creators need to grow and thrive,” Jellysmack president Sean Atkins said in a statement. “Our technology is gathering powerful insights that put us in an unrivaled position to evaluate and offer much-needed upfront capital for a creator’s YouTube video library.”
The offering is part of Jellysmack’s overarching Creator Program, which grew from 100 to 400 members in 2021, and includes MrBeast, Patrick Starrr, and Bailey Sarian. The company raised a nine-figure Series C investment from SoftBank in May, which catapulted it to unicorn status.