Successful venture capitalist Fred Wilson has invested $5 million in John Heilemann and John Battelle’s media startup, The Recount, which sums up the day’s politics news in short clips.
He not only believes the world needs another video media startup like The Recount, but he sees it becoming a profitable, $200 million business over the next seven years.
Wilson was an early investor in Twitter, and he said companies like The Recount could correct some of the problems caused by the rise of social media platforms.
He also outlined what he thinks VCs got wrong previously about media and why now might be a great time to invest in it, despite a slew of layoffs and consolidation in the industry.
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Veteran media entrepreneurs John Heilemann and John Battelle have a new video startup, The Recount. The Recount resembles other video startups NowThis and Quibi, and aims to summarize the politics news of the day in short clips.
The Recount has attracted $10 million in venture dollars from notable investors including Union Square Ventures’ cofounder and partner Fred Wilson. Union Square Ventures was one of the first firms to bet heavily on social media startups and made successful early investments in companies like Twitter, Zynga, and Etsy.
Wilson explains in a rare interview why his firm put $5 million into The Recount and why he believes now is a good time to invest in media companies, even as many digital publishers have been imploding.
The following interview has been lightly edited for clarity. Read the rest of the interview with Wilson here.
Lucia Moses: What’s the case for The Recount?
Fred Wilson: The idea is basically, what does news look like when it’s designed for a mobile phone and for social networks like Twitter and TikTok? There are highlight reels for sports, but what might a highlight reel for news look like on a phone?
The Recount is starting in politics because John Heilemann is a journalist in the political realm. Also, because as John Battelle and John Heilemann like to say, US presidential politics is the biggest story in the world in 2020. They have three or four ideas they’re pitching to streaming platforms. The idea is to have a traditional 30- or 60-minute television show and reproduce smaller, quick shows you can deliver on a phone.
Over time, we think recounting what happened on a given day or week …read more
Source:: Business Insider