The Process of Partnership

July 19, 2023

In past Slow Uploads, we’ve discussed elements of our investment process: our approach to sourcing – leveraging frameworks inspired by traditional consumer investing – and our valuation method(s), which is often a sum of the parts exercise. But we’ve never shared our perspective on diligence, a key step that helps us get to know the creator and the business they are hoping to grow.

At a high level, we spend time with the creator to understand why they are pursuing this path full-time, to learn about their community, and to dive into current and future income streams. Importantly, we discuss where they’d like their business to go, and why they are uniquely suited to get it there. We explore their hypothesis about their niche, and how capital might accelerate this vision. Below we share some questions we look to answer when partnering with a creator.

The Creator

  • Why have they chosen this path to date and for the next 10+ years?

  • What is their ability to delegate, scale, and evolve as needed (adopt new platforms, formats, etc.)?

  • Can they maintain volume and consistency (work ethic)? What drives their resilience?

  • Have they hired a team around them? Who, how and why did they bring on a manager, legal, tax, etc.?

  • Have they demonstrated serious, long-term commitment to the brand(s) they are building/hoping to build?

Their Community

  • Who are their superfans? Why are they so engaged? Does the creator represent part of the fan’s identity?

  • What “job” do fans hire the creator to do? What is the nature of their relationship?

  • Have they effectively built a “world” for fans to live and explore (through content or otherwise)?

  • Does their personal brand extend across multiple platforms? Across multiple community segments?

The Business and Use Of Funds

  • What are revenue streams (and expenses) today and in the next few years?

  • Have they demonstrated re-investment into the channel, brand, etc. to date?

  • What other businesses are they in, if any? How have they performed?

  • How does content support the growth of other ventures? Would a HoldCo model be effective?

  • How does capital accelerate their community and business? Are they ready for investment?

  • What do they believe the brand looks like 10+ years from now?

The Category Dynamics

  • Are there compelling and diversified monetization opportunities within the category?

  • How crowded is this category with other creators? With incumbent brands?

  • Is there significant propensity to spend within the category? Does brand loyalty matter in this category?

  • How compelling are adjacencies?

While this list is certainly not exhaustive, and some topics are mutually reinforcing, it yields responses that help us discern whether a potential investment is suited to our model. In uncovering more about the creator, their community, and their business, we are able to develop conviction in a potential partnership.