One of many greatest manufacturers on YouTube is planning a major enlargement, and has locked up a large funding to do it.
Dude Good, maybe greatest recognized for his or her elaborate trick shot movies on YouTube and different video platforms, have secured a nine-figure funding from Highmount Capital in a play to construct out their enterprise in new areas, and to broaden their core programming.
Phrases of the deal weren’t disclosed, although a supply pegged the worth of the funding at better than $100 million, an enormous quantity for a model initially constructed on YouTube.
“We’ve had a variety of goals and massive visions that we haven’t but been in a position to sort out with the scale group that we have now, or the quantity of capital that we’ve had to this point, and so this was one thing that we’ve been trying into for the previous yr, and we have been actually excited when Highmount got here alongside,” says Coby Cotton, one in every of Dude Good’s co-founders, in an interview with The Hollywood Reporter.
Along with increasing the group’s content material output, Cotton says that Dude Good desires to create extra reside experiences, in addition to discover extra shopper product alternatives. “We actually wish to broaden what we will create for households to really use in their very own properties, and we really feel like the probabilities there are infinite.”
“A 9 determine funding is important, however I believe it’s as a result of there’s such enormous potential for what the dudes are doing,” says Jason Illian, co-founder and common accomplice at Highmount Capital. “I imply, you’re speaking in regards to the creator economic system being at $250 billion and doubling within the subsequent couple of years.
“Once you whenever you discuss to youngsters and youngsters and folks that watch the dudes, they’re all being influenced, and three out of 4 youngsters stated they wish to be an influencer and a creator, so I don’t suppose they’re gonna name this the creator economic system within the close to future, they’re simply gonna name it media, as a result of that’s actually what it’s, and the dudes are on the entrance finish of that,” he provides. “We thought a major funding made sense simply because whenever you have a look at all of the issues that they’ve in entrance of them working with sports activities groups, and retailers and alternatives for occasions, we wish to be sure that there’s sufficient capital there to do it very well.”
Based in 2009 by 5 pals (twins Coby and Cory Cotton, Tyler Toney, Cody Jones and Garrett Hilbert) at Texas A&M, Dude Good has turn out to be some of the in style YouTube channels, with greater than 60 million followers. Dude Good beforehand had a TV collection on CMT and Nickelodeon, has executed alternate broadcasts for Amazon’s Thursday Night time Soccer, and has additionally executed nationwide excursions, with plans to construct a brand new headquarters in Frisco, Texas the place guests can create content material and take part in reside occasions.
In addition they plan to usher in new expertise, one thing that they’ve already quietly began doing by their free Dude Good app and streaming service, which lets customers submit their very own trick photographs to be featured.
“[Highmount] actually caught the imaginative and prescient of this being a model that lasts lengthy past simply the 5 of us dudes — as enjoyable as it could be for the 5 of us to nonetheless be doing water bottle flips after we’re in our 70s — we do agree that we actually are enthusiastic about bringing in new expertise and showcasing different expertise from the world over of creators, in order that this may be one thing a lot larger than simply the 5 of us,” Cotton says.
The purpose is to in the end create a Dude Good model that may proceed on for many years, with Illian evaluating the dudes to Walt Disney.
“After they drew the primary Mickey Mouse, I’m undecided they noticed on the time that there was going to be Disneyland and flicks and all these different issues,” he says. “However I see the dudes doing the identical factor on this family-friendly area. I simply drove by the opposite day and there was a line outdoors of Smoothie King — I’ve by no means seen a line at Smoothie King — however 9 out of 10 youngsters walked out with a Dude Good smoothie [as created in a recent video by the dudes]. And I believe that simply speaks to what they’re doing, and whether or not that goes to an animated collection or a tv collection or motion pictures in addition to the product traces and issues that go along with it. There’s a variety of issues on the desk and also you’re gonna want capital and assets and we’re simply right here to serve them and get behind them.”
In a world with family-friendly leisure in excessive demand, Highmount and the Dude Good group suppose that there’s a important alternative to develop.
“Our mission is to create probably the most trusted leisure on earth,” Cotton says. “Households are always on the lookout for methods to return collectively and truly have shared moments and recollections.”
CAA Evolution served because the unique monetary advisor to Dude Good and King & Spalding acted as its authorized advisor. Highmount Capital was represented by Stinson LLP.