Back in 2006, no venture capitalist would have invested in content marketing. Nowadays, the situation has changed drastically. BuzzFeed, Business Insider and UpWorthy are just some of the many content websites that managed to raise millions of dollars in investments.
Venture capitalists shift their attention towards content marketing
Investing in content marketing is still in its infancy. The amount of money invested is usually under $5 million. Still, it’s a good thing that VCs have started to recognize the benefits and the opportunity brought by writing articles for your website. For a more detailed overview on what VCs invested in, you can check out this guest post on VentureBeat by @nickgregg of StrategyEye.
Here is a more detailed report from StrategyEye, where you can see the amount of investments made by VCs in content marketing in the last year.
Now, let’s see what are the top 5 VCs that trust content so much that they decided to invest in it regularly.
- Lerer Ventures. It’s a venture capital fund, which invests in startups that are in an early stage. These are some of the content marketing startups in which they invested in the last year: Newscred, Percolate, Distractify, Buzz Feed. Lerer Ventures also runs an incubator, SohoTechLabs, which helps to build startups right from the idea. Their goal is to meet founders that have vision, customer insight, and are focused on execution, and to be chosen as their partners.
- Sequioa Capital. It was founded back in 1972. The team is really unique. Only one person was born in California. The others are the first generation in their family to be in America. Sequioa’s goal is to make partnerships that will last more than 10 years. They invested neither more nor less than $24 million dollars in Percolate.
- ff Venture Capital. It invests in seed stage companies. If your company is at an early stage, ff Venture Capital could be the fund for you. On their About me page they say very clearly that they avoid investing in competitive businesses, and they also make a disclaimer saying that they have the right to refuse you, but you will receive their feedback. That is pretty great, I must say. Contently was one of the content marketing startups ffVC invested in.
- Greycroft Partners. It was funded in 2006 and it is a leading venture capital firm,which focuses on investing in the Internet and mobile market companies, that are also in an early stage. Some of the content marketing startups they already invested in are: Newscred, Nativo, Skimlinks, Buddy Media. Greycroft was founded on the premise that “advances in technology have allowed companies to scale with less direct investment” and “large venture funds have a tendency to over-capitalize early stage companies, eliminating many likely exit opportunities“.
- WPP Ventures. It is part of WPP Digital, which is now the largest communications services group. It helped Percolate raise $24 million dollars, along with other four investors. If your startup is in the filed of advertising, communication, marketing, or branding, this could be the venture capital for you.
If you’re interested in VCs that invest through content marketing, take a look at this infographic.
Knowing what VCs invest in your field of interest is kind of important. You might like some investor, but at the same time he might not be interested in what you do. This is my top 5 VCs that invest in content marketing. What others do you know? Maybe I missed some important ones.