Stylish VC

Posted 5 years ago by Michael Estrin

Big media is making big bets on YouTube. All Things D is reporting that Bertelsmann Digital Media has invested $6.5 million in Style Haul, a YouTube channel that aggregates style content from more than 1,000 creators.

We aren’t exactly in the middle of a video bubble, but venture capital is increasingly becoming an important part of the space.

Like some of the other more successful YouTube partners, Style Haul’s community of content creators includes a little premium stuff, a lot more semi-pro content, and a ton of curated amateur stuff. It’s a model All Things D is calling “multi-channel networks.”

In short, it’s an entertainment brand with low production costs and a niche — fashion! — that could have a lot of upside. What’s not to like if you’re an investor?

Their low-cost, high volume production model means that even if you have to live off of relatively low CPMs, you can make it work in the short-run. But they’re also about building the brand. And more importantly, the idea is to build a business outside of YouTube.

Right now, these bets make a lot of sense. But with this kind of money moving into the space, we’re certainly going to see some really bad bets really soon.

Remember, there’s a limited number of multi-channel networks out there. And while they look better than anything else on YouTube (from an investor’s perspective), they still haven’t proven themselves to be that elusive new model everyone has been looking for.