At Felix Capital, our goal is to support the creative class, these entrepreneurs building new digital lifestyle proposition at the intersection of technology and creativity. And this week, we were delighted to announce our investment in Moonbug, a global entertainment company that develops and distributes safe and fun content for children, as we are taking part in their $145m series A led by Raine. The capital will be used to acquire additional kids’ media properties that align with Moonbug’s mission to create, grow and distribute content that helps children build essential life skills.
The kids video viewing has shifted almost entirely to digital
Children consume a lot of digital content, actually 5 hours per day on average and 72% of this daily viewing is streaming services (SVOD and AVOD). As a result, YouTube has emerged as the destination of choice when it comes to children content: it already represents 15% of watch time among 0–12 kids in USA, UK and Canada. However, interestingly enough, among top children YouTube channels, most viewed IPs are nontraditional brands, that have grown organically, such as Chuchu TV, ToyPudding and Masha and the Bear.
Most popular children-themed YouTube channels as of September 2018, ranked by number of subscribers (in millions)
Moonbug is executing on an IP focused strategy
The kids content space is highly fragmented, with many talented creators around the world producing fun and quality content with potential to be further develop through a 360-degree approach. By building a portfolio of kids-focussed IP with long-term entertainment value, and merging their industry expertise and operational excellence, Moonbug is creating a safe media environment for kids. The company recently announced its first IP acquisition, Little Baby Bum, one of the most popular YouTube, Amazon and Netflix properties with more than 23 billion global views. We are expecting more acquisitions to follow.
We are entrepreneur driven
At Felix, our ambition is to partner the best entrepreneurs, with big ideas, helping them build strong brands and platforms that stand out. Moonbug was founded by media veterans and serial entrepreneurs Rene Rechtman, whom we are lucky enough to count among our group of expert advisors, and John Robson. We have built a trustful relationship with Rene over the years, and are impressed by his deep industry expertise and very high ambition. He identified this unique market opportunity during his time as head of non-linear media at The Walt Disney Company International, and as president and leading internal at Maker Studios (acquired by Disney). John Robson served as managing director of WildBrain and held executive roles at HTC and Paramount Pictures, among others. They surrounded themselves with a A-level team, all leveraging their relevant background at top entertainment companies.
We are thrilled to be part of Moonbug journey and will work with them to support their expansion as they will grow their IP portfolio.