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Russell Simmons’ All Def Digital, a multi-channel network on YouTube, has just raised a $5 million Series A. The funding round was led by Greycroft Partners and also included investments from Advancit Capital, Nu Horizons Investments and e.ventures.
The YouTube brand, which Simmons co-founded, focuses on a young African American audience, sort of like BET for the millennial generation. This is one of many of Simmons ventures including the hip-hop record label Def Jam and clothing line Phat Farm. Simmons also has experience creating content through his comedy show Def Comedy Jam, which appears on HBO.
ADD represents another example of the YouTube space filling out with its own versions of popular broadcast content. Because of YouTube’s formatting and stylistic differences from mainstream television many MCN’s have found success appealing to audiences that previously were the domain of large broadcast networks.
For example Mitu is a well-funded MCN that focuses on young Latino audiences that previously would have just been targeted by Telemundo or Univision. And AwesomenessTV is an MCN that targets young millennials that previously would have been the focus of a channel like Nickelodeon. Not coincidentally Mitu has a deal to produce short form content form Univision and AwesomnessTV has a show on Nickelodeon by the same name.
Additionally, this isn’t the first time venture capital firm Greycroft has invested in an upstart MCN. The VC previously has made investments in Maker Studios and AwesomenessTV.
"Alan Patricoff at Greycroft is one of the most forward looking and savvy investors in early and advanced stage companies, period," said Simmons in a statement. "And Mark Terbeek was one of the first VC's to see the revolution in video coming, having experience in many related investments. Greycroft's vantage point and network of relationships across the media landscape will be tremendously valuable to us as we grow." Terbeek will join ADD’s board.
ADD’s said its new financing will be used to accelerate the company's cross-platform growth, artist and talent development initiatives, and original programming in comedy, music, news and poetry. Focusing on cross-platform growth suggests expanding ADD beyond YouTube to other content distributors, or perhaps its own proprietary website.
