July 22, 2003
Content investing on the rise
This slightly contorted story in the Venture Capital Journal wanders a bit when it comes to the FCC/media regulation stuff but presents some interesting data on venture investing in media. Todd Dagres of Battery Ventures says "Content has been and will be king," while Stewart Alsop (with a stong media background) of NEA says "Investors would be crazy to get back into content."
But crazy or not, they have returned. As of early June, venture and buyout firms had invested 83% more dollars in media content plays than they did in all of 2002-and were on the cusp of surpassing the 2001 total of $3.39 billion (see chart below). A good chunk of this year's activity involves either buyout or late-stage venture dollars, but early-stage players also are making a push in emerging markets like digital cable television.