(Bloomberg) — Viral Nation Inc., a digital marketing firm that manages social media influencers and works with some of the world’s largest tech companies, raised C$250 million ($198 million) in equity funding from Todd Boehly’s Eldridge Industries and Maverix Private Equity.
The transaction values the Toronto-based company at C$650 million, Joe Gagliese, Viral Nation’s co-founder and chief executive officer, said in an interview.
“We believe the future of the world is influence,” Gagliese said. Viral Nation provides brand marketing services to large corporations seeking to connect with customers on social platforms including Instagram, YouTube and TikTok. Its client list includes Facebook parent Meta Platforms Inc., Tencent Holdings Ltd., Coca Cola Co., Walt Disney Co., and Uber Technologies Inc.
Viral Nation also works with Eldridge-backed online ticket seller Vivid Seats Inc. and the Hollywood Foreign Press Association, the organization behind the Golden Globes award show, which is produced by Eldridge’s MRC Live & Alternative. It’s trying to help modernize the show, following a backlash about its poor record on diversity.
The funding — C$150 million upfront and another C$100 million within 18 months — will be used in part to fund the company’s global expansion via acquisitions in regions including Brazil, Israel and Europe, said Gagliese.
“We’re trying to find talent and marketing companies where we can supercharge growth by giving them the platform and resources to explode,” he said. The company plans to bolster its content-service offerings and double the headcount of its engineering team.
Founded in 2014 and profitable from inception, the company derives the majority of its earnings from the U.S. and China, Gagliese said, adding that Viral Nation’s revenue for this year is projected to exceed C$220 million. Investments in technology to help manage the company’s talent and marketing divisions will increase its margins, he added.
Viral Nation offers subscription-based software and analytics services. In June, it aims to launch an AI-powered tool for use by businesses and individuals that aims to ensure responsible online conduct, Gagliese said.
Athlete Deals
Viral Nation also develops brands in conjunction with clients managed by its talent arm, which includes the management of U.S. college athletes. It has launched two direct-to-consumer cosmetics companies, one of which has reached $20 million in annual revenue, Gagliese said, declining to provide further details.
Read More: College Athletes Finally Make Cash With Meet-and-Greets, Tweets
“Viral Nation’s expertise in connecting brands, creators, and audiences gives them unique insight into the broader needs of organizations and individuals embracing new media,” Boehly said in an emailed statement. “We’re excited to partner with them on expansion and innovation that enables everyone to grow and thrive across the entire social ecosystem.”
Eldridge’s Boehly and Jeff Wilbur and Maverix’s John Ruffolo have joined Viral Nation’s board. The deal marks the first investment by Maverix, which aims to make bets on fast-growing, technology-enabled companies.
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