StreamElements, a platform for live stream production, monetization, and audience engagement has secured $11.3 million in Series A funding. The company currently serves over 200,000 monthly active channels.
Conquering the streaming market
The funding round was led by Pitango VC and previous investors State of Mind Ventures, Rainfall VC, Samsung Next, and others.
StreamElements bases its service in three areas: production, monetization, and “unique service.” Production encompasses streaming additions, like themes and overlays, customizable alerts, and loyalty programs.
Through monetization services, the company serves influencers in areas like tipping, custom merchandising, and brand partnerships. Finally, the company prides itself on giving customers 24/7 support on all matters relating to streaming activity and product setup and implementation.
“Since our launch 18 months ago, we proved that a full stack production and revenue generation platform is what live-streaming and esports really need,” said StreamElements CEO Doron Nir. “This new funding round shows what people in our industry already know — this is the next frontier for online media. It’s growing faster than anything we’ve seen, and the level of passion of the audience is unparalleled to anything else video entertainment has to offer.”
According to SteamElements, it has managed to grow its user base by 600 percent in the last year alone. The company was founded in 2016 and expects creator revenue to exceed $40 million in 2019.
“Live video content creators are some of the hardest working people in showbiz,” said StreamElements co-founder and Chief Streamer Officer Or Perry. “They have massive audiences, huge followings, yet they make less than 20% of their true revenue potential. We are here to close this gap and help these talented creators materialize their full potential with our extraordinary level of service and the best production tools on the market.”
Growth supported by a passionate audience
Alongside the fundraising, the company announced a new addition to its brand partnership team. Scott Clark, a veteran from the digital media market with over 20 years of experience in the field, is joining StreamElements as Head of Brand Partnerships.
“Brands are struggling to reach Millennials and Gen Z consumers through traditional advertising,” said Clark. “This group represents major buying power and cultural authority, yet ad blocking is high, cable subscriptions are low, and media is extremely fragmented. Live streaming content, particularly in gaming and esports, is fast becoming the entertainment vehicle of choice.”
StreamElements has worked on marketing campaigns with companies like Red Bull, Sennheiser, Warner Brothers, Trojan, and 7-11. During last year, donations to content creators grew to $15 million while $1 million was delivered through brand partnerships thanks to the company’s initiatives.
“The live streaming ecosystem on Twitch, YouTube, and other channels is experiencing massive growth in audience, time spent, and content,” Clark added. “Brands need to expand the scope of their influencer marketing initiatives to explore integrated sponsorships and advertising options with this community.”