The Exchanges

Q Can you now tell us a little about your background and the driving force for you entering the venture capital industry?

A Absolutely. I've been in the media tech world for 25 years, so a long time. Uh, I spent half my career in the traditional media companies, so studios such as Universal, New Line Cinema, and Savoy, so kind of the small, medium, and large studio system. And then at the, in 2000, I struck, uh, struck out to go into the more entrepreneurial side, And it was the first of many, first of four different digital media tech companies, uh, and several of which had, I'm very pleased to say, with the teams, we were able to build success, very successful companies, scale them, and have nice exits to them. So I've been fortunate to see that. So I've been on, when I was on the entrepreneurial side of the table building companies, we frequently dealt with studios and, and other partners, and so I've been on that side of the table. I've kind of seen a lot of things that way. I've raised capital, sold companies, um, and so it's been an interesting journey along these 25 years, and for me, it was a really compelling time to take all these different stories, take all these different contexts, and bring them into a different kind of, um, uh, world for me, and that was on the venture side and advisory side, and I had this great opportunity at Manat Digital Media, and so I took it.

AI assessment note: “compelling time to take all these different stories... bring them into... the venture side”

Q Fantastic. And location for startups, does it matter? Does it not matter?

A I think it does matter. Um, Which makes it challenging for entrepreneurs, and I get that, but I'll focus on the area that I'm best familiar with, which is the digital media side of things, and that's a very broad swap, ad tech and content-driven, all of that, but LA's a hot time right now. There's, it's no accident that Virtually all of the leading multi-channel networks are based in Los Angeles, kind of the hub of that kind of creativity. If you're interested, if an entrepreneur is interested in anything around that kind of space, I think that the, a very smart place to be would be to Los Angeles and pick up your, your bags and, and go there because the energy is hot. On the ad tech side, um, I've, you know, LA is a great place to be, not exclusively. New York's certainly a great place to be too because you're, you're right there with all the, You know, the, the, with Madison Avenue. Uh, so I do think location does matter. Uh, can I, do you have time for one quick example?

AI assessment note: “I think it does matter.”

Q Absolutely. And, and Manat in particular specializes in content. And where do you see the disruption of content happening in 2015? We've seen, obviously, the likes of Spotify really shake things up. What would you say is the next stage then in content disruption?

A It's what we really started to see accelerating in 2014, and I've done a lot of writing about it, which is we have this, the new platform. It's not entirely new, but it's now it's really mass appeal, which is the smartphone, right? And so you have a whole generation of millennials Uh, and even people like me, uh, who are not, who's not a millennial, um, although I'd like to think I am, but who, who gravitate now and who consume mostly, primarily, their primary consumption device for media is their smartphone. So that changes the game in fundamental ways because it's not simply that you can take traditional media and, and repackage it for a different platform. You have to think about the consumer experience in an entirely different way. That comes from that platform. So you have the smartphone that extends out the overall platform of distribution that was available to you before. It doesn't supplant it, but it extends it out. And what that means is you have different types of content development. You have different types of content creator opportunities and democratization in terms of video capture. You have different ways to monetize, and you have an ongoing way to engage with consumers that you never had before. And that means Um, engaging in a, real conversation. That is fundamentally different, and that has led to this, among other things, the proliferation of the multi-chan…

AI assessment note: “Disney buy maker studios for up to a billion dollars”

Q Absolutely. And, and Manat in particular specializes in content. And where do you see the disruption of content happening in 2015? We've seen, obviously, the likes of Spotify really shake things up. What would you say is the next stage then in content disruption?

A It's what we really started to see accelerating in 2014, and I've done a lot of writing about it, which is we have this, the new platform. It's not entirely new, but it's now it's really mass appeal, which is the smartphone, right? And so you have a whole generation of millennials Uh, and even people like me, uh, who are not, who's not a millennial, um, although I'd like to think I am, but who, who gravitate now and who consume mostly, primarily, their primary consumption device for media is their smartphone. So that changes the game in fundamental ways because it's not simply that you can take traditional media and, and repackage it for a different platform. You have to think about the consumer experience in an entirely different way. That comes from that platform. So you have the smartphone that extends out the overall platform of distribution that was available to you before. It doesn't supplant it, but it extends it out. And what that means is you have different types of content development. You have different types of content creator opportunities and democratization in terms of video capture. You have different ways to monetize, and you have an ongoing way to engage with consumers that you never had before. And that means Um, engaging in a, real conversation. That is fundamentally different, and that has led to this, among other things, the proliferation of the multi-chan…

AI assessment note: “we have this, the new platform... which is the smartphone”

Q And do you think crowdfunding is increasingly Made content creation more available. And have you seen that specifically?

A Yeah, absolutely. I think crowdfunding is really interesting because let's take Patreon as an example. Uh, Patreon is a Bay Area based company that was created by a musician for, for artists, not just musicians. And it's a different kind of crowdfunding model where it's a, a subscription, ongoing support of your artists that mean something to you. So let's say there's an artist who's Who's, you're passionate about, you like their work, they're not mass appeal, but you want to help support their lifestyle so they can continue to do the work that you want. Now it's not just a one-time, one, you know, one-time, uh, crowdfunding project, but you can give in monthly, annual, ongoing sort of commitment through Patreon. That's how it's differentiated. I think that's really, really interesting, and there's an example. Certainly you're seeing another example where I've dealt with a number of independent filmmakers and the pain points they're having because they're squeezed out of theatrical. And if you go to the theaters now, it's just really the mega movies.

AI assessment note: “Yeah, absolutely. I think crowdfunding is really interesting because let's take Patreon as an example.”

Q Fantastic, and as you slightly hinted at, Manat have a few differentiating features to traditional funds. Could you tell our listeners a little more about those, uh, assets that you bring to the table, and why it's necessary for startups to have these services and expertise at hand?

A Sure. So Manet Digital Media is an interesting from, on the venture side, a very unique place, and, and we, by the way, just as an aside that shows you a little bit more uniqueness, we just recently launched our own incubator in conjunction with software development house Originate, um, as well as with major talent agency ICM, and that's called Originate Labs, so OLabs. So it's a unique place that has the business advisory, it has the legal, but it has the venture side and has the, Uh, the incubator. Um, what makes us unique on the incubator, or excuse me, on the VC side is that we have a depth of expertise when it comes, and context when it comes to media and entertainment and advertising as specific areas related to our conversation. But it also, let's take the area of digital media. Digital media is fraught with legal issues. There's IP rights, there's rights licensing issues, name issues, Um, privacy issues in the ad tech space. All of these, these legal issues that permeate, um, the business world. So where business ends and legal begins, it just, it's part and parcel of the same thing. We are the only place that I know of that really can bring that, that kind of expertise together and really understand the, the framework and add value as a VC in that way too, where we can flag issues before they become problems and we can be problem solvers. And that makes us a pretty uni…

AI assessment note: “we can flag issues before they become problems and we can be problem solvers”

Q Fantastic, and as you slightly hinted at, Manat have a few differentiating features to traditional funds. Could you tell our listeners a little more about those, uh, assets that you bring to the table, and why it's necessary for startups to have these services and expertise at hand?

A Sure. So Manet Digital Media is an interesting from, on the venture side, a very unique place, and, and we, by the way, just as an aside that shows you a little bit more uniqueness, we just recently launched our own incubator in conjunction with software development house Originate, um, as well as with major talent agency ICM, and that's called Originate Labs, so OLabs. So it's a unique place that has the business advisory, it has the legal, but it has the venture side and has the, Uh, the incubator. Um, what makes us unique on the incubator, or excuse me, on the VC side is that we have a depth of expertise when it comes, and context when it comes to media and entertainment and advertising as specific areas related to our conversation. But it also, let's take the area of digital media. Digital media is fraught with legal issues. There's IP rights, there's rights licensing issues, name issues, Um, privacy issues in the ad tech space. All of these, these legal issues that permeate, um, the business world. So where business ends and legal begins, it just, it's part and parcel of the same thing. We are the only place that I know of that really can bring that, that kind of expertise together and really understand the, the framework and add value as a VC in that way too, where we can flag issues before they become problems and we can be problem solvers. And that makes us a pretty uni…

AI assessment note: “has the business advisory, it has the legal, but it has the venture side”

Q experience yourself in ad tech, so I'm glad you brought up the monetization route. Do you believe that advertising, with then the introduction of mobile and a new generation, do you think advertising can ever be truly native and integrated into a platform so it's succinct and relevant, or do you think it will continue to be kind of buffering YouTube adverts and, you know, facing adverts on the side?

A Well, look, you know, there's gonna be continuous experimentation to, to get it more right than, um, than has been done. I'll, I'll start with it this way. If, A marketer can have a conversation with you, um, and it, and that conversation is more relevant to you than just a pure, broad, uh, uh, rifle shot, which has been historically the case. That alone will make it more effective because I will be more interested if it's something that speaks to me in, in my wants, my needs. So that's one thing. And absolutely the targeting, the understanding the audience is going to matter. The analytics, All of that's going to matter to make the messaging more intelligent, and it's not one size fit all. Then, secondly, if that, if the brand or the marketer can tell a story itself in a different kind of way where it's not a hammer anymore, just buy, buy, buy, but it's more, I can help you solve problems. I can bring people who mean something to you to your attention. I can help you engage with them. I can give you, um, special access. I can give you, Special deals that you otherwise wouldn't find. I can give you special experiences. I can, things like, um, you know, Red Bull Soundstage. They have their concert events. You know, things like that where you're building it in that way. Absolutely. If I can, if I can help you promote the lifestyle that you believe in already, then it's a very dif…

AI assessment note: “I believe that that can be done in multiple ways, including native advertising”

Q And what was your kind of aha moment that made you switch to the venture capital side?

A Well, so a couple things. Venture is a significant, it's an important part of what we do, but we're also very much, Manate Digital Media is very much about connecting and accelerating businesses and really helping businesses, um, startups, entrepreneurs, but other companies as well, big and small, but on the more entrepreneurial side to really get them the rocket fuel they need to build. So for me, the aha moment was really, okay, I've built a number of companies now. I've been at the very large enterprises, the studio system. What's interesting to me, and where can I add value? My aha moment is that I've just collected over the years these wonderful contacts, relationships, and experiences, good and bad, and I felt like I was in a position where I could add real value to others who are going through that process at an earlier stage, and it was exciting to me Uh, from, at this point, my professional career.

AI assessment note: “My aha moment is that I've just collected over the years these wonderful contacts”

Q Why do you think startups don't have this, or funds don't have this legal branch already incorporated in them? Because as you say, it is a fundamental part of a startup's growth. You know, you will encounter legal problems. Why do you think you are the sole ones and other people haven't adopted it?

A I think part of it is just overall time that the times that we sit in where the businesses were very much focused on one area before and being less cut full service on the professional services side. Manat's always been a unique place because we've had business consulting, um, in a very McKinsey like way for a long time as well, as well as the, uh, legal. And we've had a venture fund for over 10 years, by the way. But more, I think that increasingly Clients will demand, and, and entrepreneurs will demand to not have to go to this place, this place, and this place, and so you'll see more of an evolution of businesses doing what we do, and VCs doing what we do. Uh, we're just, we're just early. You know, we're, we're innovators, truly, we're innovators in the venture game.

AI assessment note: “businesses were very much focused on one area before and being less cut full service”

Q And what was your kind of aha moment that made you switch to the venture capital side?

A Well, so a couple things. Venture is a significant, it's an important part of what we do, but we're also very much, Manate Digital Media is very much about connecting and accelerating businesses and really helping businesses, um, startups, entrepreneurs, but other companies as well, big and small, but on the more entrepreneurial side to really get them the rocket fuel they need to build. So for me, the aha moment was really, okay, I've built a number of companies now. I've been at the very large enterprises, the studio system. What's interesting to me, and where can I add value? My aha moment is that I've just collected over the years these wonderful contacts, relationships, and experiences, good and bad, and I felt like I was in a position where I could add real value to others who are going through that process at an earlier stage, and it was exciting to me Uh, from, at this point, my professional career.

AI assessment note: “My aha moment is that I've just collected over the years these wonderful contacts”

Q Why do you think startups don't have this, or funds don't have this legal branch already incorporated in them? Because as you say, it is a fundamental part of a startup's growth. You know, you will encounter legal problems. Why do you think you are the sole ones and other people haven't adopted it?

A I think part of it is just overall time that the times that we sit in where the businesses were very much focused on one area before and being less cut full service on the professional services side. Manat's always been a unique place because we've had business consulting, um, in a very McKinsey like way for a long time as well, as well as the, uh, legal. And we've had a venture fund for over 10 years, by the way. But more, I think that increasingly Clients will demand, and, and entrepreneurs will demand to not have to go to this place, this place, and this place, and so you'll see more of an evolution of businesses doing what we do, and VCs doing what we do. Uh, we're just, we're just early. You know, we're, we're innovators, truly, we're innovators in the venture game.

AI assessment note: “businesses were very much focused on one area before... We're just, we're just early.”

Q Does a track record of failure put you off at all?

A It depends. If it's a, if it's a lengthy track record of failure, candidly, of course, that will be a red flag. Uh, it doesn't mean that it can't be overcome, but it will certainly be a red flag. Um, Timing is, look, I believe that there's a lot of fortuity to a lot of things. No question. But certainly, yes, to answer directly, I think yes. But I think that the, you know, the network of people who you've surrounded yourself, the vision of what it is, the thinking through, having done your homework. I'm a very strong believer in tenacity and hard work and getting it done and analyzing everything so the competitive landscape so you can really directly point of why you're differentiated. So you have to be a good storyteller. Because you have a limited amount of time. You have to be a good storyteller and build the credibility as best you can, but it, you know, with a, with a vision that is truly unique.

AI assessment note: “If it's a lengthy track record of failure, candidly, of course, that will be a red flag.”

Q Does a track record of failure put you off at all?

A It depends. If it's a, if it's a lengthy track record of failure, candidly, of course, that will be a red flag. Uh, it doesn't mean that it can't be overcome, but it will certainly be a red flag. Um, Timing is, look, I believe that there's a lot of fortuity to a lot of things. No question. But certainly, yes, to answer directly, I think yes. But I think that the, you know, the network of people who you've surrounded yourself, the vision of what it is, the thinking through, having done your homework. I'm a very strong believer in tenacity and hard work and getting it done and analyzing everything so the competitive landscape so you can really directly point of why you're differentiated. So you have to be a good storyteller. Because you have a limited amount of time. You have to be a good storyteller and build the credibility as best you can, but it, you know, with a, with a vision that is truly unique.

AI assessment note: “to answer directly, I think yes.”