YouTubers will use funds to invest in content, creative partnerships, and building robust management team.
Dude Perfect has agreed a strategic partnership with private investment firm Highmount Capital, which will inject a nine-figure growth capital investment into the sports-based YouTube channel.
The specific value of the investment was not disclosed, but Variety reported that it is worth between US$100 million and US$300 million.
Dude Perfect, which started publishing videos in 2009 and partnered with now DAZN-owned Team Whistle in 2019, has built a following of more than 100 million across its social channels. It will use the funds to pursue new business opportunities, including content, new creative partnerships, and building a management team.
The investment deal, which was advised upon by CAA Evolution and King & Spalding, comes with Dude Perfect set to open a new headquarters in Frisco, Texas. The mixed-use facility will provide space for content creation, community events, a retail store, managing operations and the digital brand’s streaming service.
“The mission of Dude Perfect is to serve families with the most trusted entertainment on earth,” said Dude Perfect co-founder Coby Cotton. “By partnering with Highmount Capital, we hope to pour gas on the fire and take the Dude Perfect fun that families have witnessed on screens these past 15 years and turn it into real life products and memory-making experiences they can actually touch and feel for themselves.”
“The Dudes have truly captured the hearts and minds of the next generation, pioneering the new creator-led media space and expanding far beyond video and traditional channels,” said Jason Illian, co-founder and general partner at Highmount Capital. “In addition to creating content that garners billions of views every year, which is an impressive feat on its own, the Dudes have built something even more valuable and that is trust – trust with families, brands, and consumers of all ages and backgrounds.”
SportsPro says…
The growth of YouTube creators such as the Dude Perfect group represent an intriguing opportunity for private investors. Often founded with minimal startup costs and operational management, these channels are still enjoying huge growth as younger generations increasingly shun traditional entertainment in favour of YouTube.
The Highmount investment should help professionalise the creator group and expand operations. However, it will come with the pressure to produce returns and therefore the challenge of balancing commercial goals with maintaining the creativity that has built Dude Perfect’s success.
Dude Perfect bills itself as a ‘leading family-friendly sports and entertainment group’. This potentially makes it a safer bet for brands and investors than some of the creator brands that rely on more controversial content.
If this investment is successful for Highmount, the sports creator category could become a bigger focus for investors in the future given it can succeed without expensive rights while proving an attractive option for brands.
SOURCE: https://www.sportspromedia.com/news/dude-perfect-investment-highmount-capital-youtube/