Column: How We're Investing in Entertainment Tech in a Post-COVID World

Column: How We're Investing in Entertainment Tech in a Post-COVID World

As COVID-19 vaccinations continue and restrictions slowly lift, consumers and companies alike are confronting an entertainment industry changed by the pandemic.

Creators, technologists and investors are working hard to understand today's evolving demand and meet it creatively. It is hard to overestimate the impact of the pandemic on entertainment. Movie theaters remain dark, concerts are cancelled or postponed and many TV and film sets are still on hold.

Entertainment providers have become more creative in developing effective business solutions — including filming TV shows from home, making movies available online and offering virtual concerts. In some cases, they have ended up reaching a larger audience than in the pre-pandemic era.

Since the timeline for the vaccine rollout is uncertain, it is critical that investors look at which startups best understand today's consumer demand, and which are in a good position to grow their business as the pandemic begins to ease.

At Pegasus Tech Ventures, we've been keeping an eye on some of the trends shaping the entertainment and technology worlds. Here's what we see emerging in the future of the industry.

Short Form Video Has a Social Life

Consumers around the globe are looking for new ways to express their creativity and reach out to friends and followers through short-form videos. We've seen the pandemic expand this trend dramatically. According to a recent consumer survey by TheSoul Publishing, 84% of audiences said they spend more or the same amount of time watching short-term videos during the pandemic than ever before.

The startup Triller has gained the attention of such consumers, in part due to the well-known names of its investors and celebrity endorsers, including Snoop Dogg, The Weeknd and Lil Wayne. As TikTok has been banned in many countries around the world, Triller — a Pegasus Tech Ventures investment — enabled users to develop music-driven, short-form content. It is a good example of an innovative startup that has the right platform and content to meet what consumers are looking for today. Having its U.S. headquarters in Los Angeles helps reassure users about their privacy and security.

Hollywood Talent Is Meeting Technological Know-How

As the pandemic drags on, continuing the shutdown of TV and film shoots as well as live events, it's become clear that Hollywood's future is inextricably tied to technology. We have our eye on startups that combine the work of technologists and creatives to launch innovative brand experiences for pop culture audiences. As a result of the pandemic, consumer expectations have risen and we look for startups that meet these expectations.

Caravan – founded in partnership with Hollywood's Creative Artists Agency – is one such company. The startup studio has a mission of identifying gaps in culture and entertainment, where the company can offer next-generation media experiences. It's tapping into a trend of direct-to-consumer market growth and building on its unique connection to celebrities, including musician Carrie Underwood, who recently launched her Fit52 platform with the company. Keep an eye out for new products from Caravan.

Combining Engaging Entertainment with Easy-to-Use Ecommerce

While online shopping was already a rapidly growing industry, the COVID-19 pandemic has rapidly accelerated the shift from physical stores to ecommerce. Consumers spent $861 billion online with U.S. merchants in 2020, up an incredible 44% year over year, according to Digital Commerce 360 estimates.

Popshop is an innovative platform that works to take advantage of this consumer trend, combining the engaging features of a Triller or TikTok with the easy-to-buy ability from a QVC or the Home Shopping Network. It's one of several such startups in this space, including talkshoplive and WhatNot. What sets PopShop apart is its interactive and easy to use interface that enables its users with unique shopping experiences. Generation Z and millennials are looking for a fun and convenient shopping experience — giving the company an opportunity to grow in the U.S. and abroad.

It's more challenging than ever to predict winners and losers in the entertainment industry. Smart investors should understand today's consumer trends and which startups are in the best position to service market demands. Another key factor to consider is their founders' expertise, connections and passion – since an amazing team is the most likely to succeed despite unpredictable headwinds.

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Ben Bergman

Ben Bergman is the newsroom's senior finance reporter. Previously he was a senior business reporter and host at KPCC, a senior producer at Gimlet Media, a producer at NPR's Morning Edition, and produced two investigative documentaries for KCET. He has been a frequent on-air contributor to business coverage on NPR and Marketplace and has written for The New York Times and Columbia Journalism Review. Ben was a 2017-2018 Knight-Bagehot Fellow in Economic and Business Journalism at Columbia Business School. In his free time, he enjoys skiing, playing poker, and cheering on The Seattle Seahawks.

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Minnie Ingersoll
Minnie Ingersoll is a partner at TenOneTen and host of the LA Venture podcast. Prior to TenOneTen, Minnie was the COO and co-founder of $100M+, an online marketplace for used cars. Minnie started her career as an early product manager at Google. Minnie studied Computer Science at Stanford and has an MBA from HBS. She recently moved back to L.A. after 20+ years in the Bay Area and is excited to be a part of the growing tech ecosystem of Southern California. In her space time, Minnie surfs baby waves and raises baby people.