medial-logo

Trending Posts on medial
(Web is currently locked, you need to download the app to read all posts, comments and network)

Medial Startup Trivia  • 

Stealth • 12h

Youtube's Great Pivot YouTube, the video-sharing platform that has become an integral part of our daily lives, had a rather unconventional origin story. Initially, the founders envisioned it as a dating site where users could create videos introducing themselves and describing their ideal partner, with the hope of finding a perfect match. The initial dating video concept failed to gain traction, and the founders struggled to find users interested in utilizing the platform for that purpose. However, instead of abandoning the project, the co-founders Steven Chen and Jawed Karim made the strategic decision to pivot and transform the platform into a host for any type of video content. The concept of using YouTube as a dating platform came out of the founders' experience at PayPal, where they witnessed the power of digital transaction. They saw the immense potential of the internet to transform various industries and wanted to venture into new territory. The founders even hiring lap dance girls to attract news people and create buzz around the site. Working off a small garage, the three began developing the platform, even better. They faced numerous challenges, from technical issues to limited resources. However, their determination and belief in their idea helped in their progress. They focused on creating a user-friendly interface that would make it easy for anyone to upload and share videos. YouTube's co-founder Jawed Karim publicly shared the platform's early intent - dating videos with the motto "Tune in, Hook up." That slogan, as we all know, later became "Broadcast Yourself." Facing with a lack of submissions they started offering $20 to women for submitting their videos, which too did NOT work. Their moment was when they pivoted to accept any videos. Finally, YouTube was launched in 2005! Karim's "Me At The Zoo" became YouTube's first official video. Early Strategy— OG YouTube, As we know it. Even then building YouTube was with a lot of hurdles. Initially, they struggled with video file sizes and compatibility issues. Uploading videos was time-consuming, and playback could have been more seamless. However, they leveraged Flash Player 8's codec to shrink video files and enable instant playback on web browsers. This breakthrough significantly improved the user experience on the platform. Despite their efforts, YouTube faced competition from Google Video, another video-sharing platform. However, the founders were determined to stick with their vision of user-generated content, this time. They believed that the key to YouTube's success was empowering ordinary individuals to share their videos, in not just the US, but the whole world! When the founders re-launched YouTube for the user generated content, it was bang on, several instances of virality was found in deep pockets of the platform, but from where? Soon, they figured out that the videos people would share would then be shared on MySpace, the leading social media platform, at the time. They did what they had to do and made a strategic move with MySpace, and got integrated as their video medium on the platform. What happened next was — YouTube won. Uploading videos was way faster than google and because of their strategic move, they had greater distribution too. Capital and Legal Battles They needed additional funding to sustain the platform's growth. Took them a while but they secured a $3.5 million investment from Sequoia Capital, endorsement by Roelof Botha, a former PayPal executive. With the infusion of capital, YouTube expanded its infrastructure and improved its technical capabilities. They invested in servers and bandwidth to handle the increasing demand for video content. This allowed YouTube to accommodate the growing number of users and ensure a smooth experience for everyone. Months later, it raised another $8 million Series B round from the same VC. Which led to Sequoia Capital having a 30% stake in the company, which went on to become $495 million in later stages, giving them about 43 times the return on investment later in the same year. They were the headlines a lot of times while they were growing as the media industry has tight and unstructured copyright laws. But then Google jumped in and bought YouTube for $1.6 Bn which was scrutinized largely due to the huge acquisition costs. Even veteran investor Mark Cuban remarked that Google has severely overpaid. In the end: Well, in the turn of times, now YouTube provides google about $1.6 Bn every two weeks, through revenue. YouTube expanded its reach beyond personal videos to include various content genres. Creators and influencers started to emerge, building dedicated fan bases and monetizing their channels through advertising and brand partnerships. YouTube's algorithm evolved to recommend personalized content to users, ensuring they would find videos tailored to their interests. Hope this historical nugget inspires you guys! Be on Medial for more such nuggets!

Harsh Dwivedi  • 

Medial • 9h

Summing Up the Week for you! 1. Fundings: - Indian startup ecosystem was a low-key affair this week as compared to the previous six-day period. Between May 6 and 11, startups cumulatively raised $220.2 Mn across 21 deals, a 30% decline from last week’s $316.4 Mn secured in 23 deals. - Despite the muted funding trends in the week, one mega deal materialised in the week for SaaS startup Atlan. The data collaboration software provider bagged $105 Mn in its Series C funding round, co-led by GIC and Meritech Capital. The round also saw Atlan’s post-money valuation climbing to $750 Mn. - Enterprisetech rose to dominate funding trends at a sectoral level. Startups in the space raised $113.2 Mn across 5 deals, the greatest number of deals secured at a sectoral level. - Peak XV Partners, Endiya Partners, Nitin Gupta, and Inflection Point Ventures were the most active investors this week, backing 2 startups a piece. Seed funding continued to tumble down this week, with startups at this stage securing $8.4 Mn this week. This is a 32% decline from last week’s $12.3 Mn. 2. Acquisitions: - Digital solutions provider Hexaware Technologies has acquired data consulting firm Softcrylic for an undisclosed sum. It has bought the US-based firm to strengthen its data and analytics capabilities. - Private equity firm KKR announced that it will acquire medical devices company Healthium Medtech Ltd from an affiliate of funds advised by Apax Partners LLP for an undisclosed amount. 3. Major Developments: - Lending tech startup Niro is eyeing $4.3 Mn in a pre-Series B funding round. It is looking to raise the funds from Marui Group, along with existing investors like Elevar Equity, GMO Venture Partners, Rebright Partners, among others, at a valuation of $55 Mn. - InCred Capital’s Incred Alternative Investments marked the first close of its maiden private equity fund with capital commitments of over INR 330 Cr. The Vivek Singla-led venture capitalist (VC) firm is targeting to close the fund at INR 500 Cr. - Pune-based software company Icertis is looking to raise $150 Mn via a secondary share sale, a deal that could see an increased investment from SoftBank.

Download the medial app to read full posts, comements and news.