It looks like the VCs are buoyant about the future of online advertising, especially video, even if a few people aren't right now. Kennet Partners, the pan-European venture private equity firm, is investing €6.5 million in GoViral, a global online distributor of branded video content. As part of the investment, Michael Elias from Kennet will join the board of GoViral, which is based in Copenhagen, with offices in London, Frankfurt and Paris.
GoViral serves branded video content across its proprietary online publisher network. The campaigns are distributed in local languages, on local sites and with local publishers. It works with creative and media planning agencies and publishers to create campaign strategies.
Michael Elias, managing director of Kennet (which has around $500 million in funds under management) reckons GoViral has “developed a first-mover advantage in a significant new market” which is VC-speak for “it's going to scale fast and we're going to do well out of it”. It also ticks a few other boxes: Transforming media? Check. Fast-growing? Check. Profitable? Check. Global market opportunity? Check. Capital-efficient? Check. Good management team? Check.
Jimmy Maymann, CEO of GoViral thinks “video advertising is a key consideration that will help the online channel become the most important advertising medium in the future.” That's fair comment, given what we know about the rate at which online video is growing.