Deals. Deals. Deals. Some Cannes News. And Then Some Google Stuff.
FPC is breaking its bi-weekly rule by publishing an edition this week. Why is this landing in your inbox today?
Well, for one, it’s bloody miserable day in London, and we need some verbal ad tech sunshine to power through this utterly s*** weather.
But the primary reason is that it’s deal Friday, and you must act now to seize the opportunity to invest some of your hard-earned cash in two of the finest early-stage startups in the ad tech world.
Now, lean back, forget about that house extension, and immerse yourself in the magnificent possibilities of early-stage ad tech. In other words, get investing.
Turning The Open Web Into TikTok While Taking Money From TikTok (Genius)
Pixels.ai (https://www.pixels.ai/) is the first deal on the docket today. Pixels is a vertical video solution designed for the open web.
It's hard not to like an ad tech company taking money off the walled gardens. Pixels’ core video format V-Roll (vertical roll) beats social video formats on performance.
Pixels improves TikTok by serving quality, contextually relevant vertical video content (built in-house, using exclusively licensed content) instead of horse s*** UGC. Layered over the top is the Pixels core targeting AI, which keeps satisfied users in the content vortex.
FPC has invested in Pixels. We love the solution. Why? We give seven reasons below:
Pixels has built V-Roll (vertical roll), a vertical video ad unit we call the TikTok-ification of the open web. Its core objectives are to help publishers increase yield and deliver KPIs for advertisers.
Pixels is already MAKING MONEY, generating £250k ARR, and is poised to close the year with a £1M+ net revenue run rate, a testament to its potential for substantial growth.
Pixels is a game-changer, diverting funds from the walled gardens and excelling in performance - a boon for agencies seeking alternatives that can deliver superior performance and margin.
Pixels has built its own stack, including a proprietary video player. It also has exclusive third-party video content partnerships and a real-time production platform to serve contextually relevant content to users.
Pixels has built its own AI (secret sauce) to help power recommendations and keep users engaged while in the V-roll. Its algo keeps users consuming quality content and ads.
For UK investors, this £250K is completely SEIS covered, giving you a 50% tax rebate on the investment.
Pixels is a rising star in our portfolio, and this goes the distance - a US market entry beckons, with a decent exit to follow.
Contxt Media Has Some Allocation Left
The second deal on the docket is Contxt Media. Contxt Media is close to closing out its round, but some allocation is left. You better be quick.
The deal is SEIS-covered. A deep dive into financials, tech, and TAM is available here - https://investors.firstpartycapital.com/deal/detail/74719138-8755-4ff1-bb8a-31fa82b979a6. There is also a 30-minute Q&A with Ed French, CEO of Contxt Media.
FPC has already invested and will invest more by the end of the year.
Here are the seven reasons why FPC loves this deal:
Contxt Media is the contextual layer for VOD, working with publishers and creators to increase video & CTV yield.
Contxt Media’s real sweet spot is on the YouTube sell-side, where it helps publishers, MCNs, and creators transcribe video content, build categorisation for YT (a function Google cannot deliver), and automate integration into GAM for PG sellers.
YouTube will attract $33 billion in spending this year, bigger than the entire European TV ad market combined (£28 billion). Still, YouTube is woefully underrepresented by ad tech - and practically non-existent on the sell side.
Thousands of media companies and creators sell YT PG deals to agencies, making up about 10%+ of YT spend. Contxt Media delivers a greater yield for this segment of customers—and, more importantly, more money.
FPC can integrate Contxt Media into its global network. We already have 5-6 resellers lined up. Unlike most managed service businesses, it's also a lean tech machine. There is no need for IO slingers. Empower your customers - not obfuscate margin.
For UK investors, this £250K is completely SEIS covered, giving you a 50% tax rebate on the investment.
Contxt Media is one of FPC’s best portfolio companies, and we love it. It targets an underserved market, can be scaled easily through the FPC network, and has proper tech. We expect it to be taken out early.
The Cannes Social - Next Level Ad Tech Networking
We will host our network party in Cannes in partnership with ExchangeWire on June 18.
The Cannes Social has become the premier get-together at Cannes and is now officially bigger than ad tech Jesus. Trend-setting industry rag Ad Tech Abertoire has voted it the number one Cannes event for two years running. The Cannes Social is pure zeitgeist, natch.
And, of course, nothing speaks to the Côte d'Azur like pints of tasty Carlsberg in an Irish pub on a scorching afternoon. Magic.
You can book your spot for The Cannes Social here: https://www.eventbrite.co.uk/e/the-cannes-social-by-firstpartycapital-exchangewire-tickets-879552945537?aff=oddtdtcreator.
A big shout out to our Cannes Social partners, who will be in attendance at the hottest networking event at Cannes:
Hopefully, we will see you there.
Adam Heimlich Deep Dive On the Google DOJ Trial In September
Are you confused about the upcoming DOJ case against Google? FPC was totally befuddled by the legalese surrounding the case. In this excellent primer, Adam Heimlich breaks down the case against Google and how the DOJ might approach it.
Adam is among the few ad tech leaders who publicly criticize Google for its monopolist practices. He is always feisty, articulate, brutally honest, and invariably accurate in his Google analysis.
FPC salutes you, sir, for your continued good work.
Get up-to-speed by watching the video below.
And on that punch-a-monopolist-bully-in-the-face note, we will sign off for this week. Have an excellent ad tech weekend.