Electrify Video Partners has raised $85 million from private equity fund Capital D to invest in and acquire YouTube channels–particularly those making long-form educational content.
For anyone not familiar, London-based Electrify was co-founded in May 2021 by Ian Shepherd (a Turner Broadcasting, Universal Music Group, and Walt Disney alum who also co-founded creator/consumer brand licensing company The Social Store), Owen Maher (a longtime finance exec who was executive managing partner of strategy for Findex and a principal at investment company KKR), and Justin Reizes (a former longtime KKR executive).
The trio founded Electrify to invest both cash and resources into “established, successful creators with a solid income,” in exchange for partial ownership of their channels (usually around 50%) and a share of profits. Electrify also acquires some channels outright. It’s said that when it invests in a YouTuber, it aims to “at least treble the revenue and profit” of their channel.
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So far, it’s invested in Veritasium, Astrum, SpitBrix, Fizzy, and Improvement Pill, which together have over 30 million subscribers and 10 billion views.
This $85 million raise marks Electrify’s first institutional investment. As part of the deal, Capital D will receive a “significant minority stake,” and will work with Shepherd, Maher, and Reizes to acquire more channels and expand Electrify’s data and technology offerings, the duo said in a press release.
Electrify added that its “primary focus” is on investing in and acquiring “long-form, factual and brand-safe content.”
“This equity raise takes Electrify to new levels, enabling us to scale our in-house capabilities and invest in many more creator businesses,” Maher, Electrify’s co-CEO, said in a statement. “We are keen to speak with ambitious video creators who are looking for either a growth partner or an exit from their business. Thank you to our existing creator partners and wonderful team for helping us get to this next phase.”
Electrify’s last funding round was a $50 million raise this past February; it was led by MEP Capital, with participation from a number of private investors.