Exit Summary:
At the time of acquisition in 2017, Facebook was launching a platform that enabled independent creators to make content through the News Feed. As they were building, the Facebook team recognized the significant need for sophisticated technology to help fend off piracy. Source3 had built a rights management system that was able to recognize, organize, and analyze intellectual property in user-generated content (i.e. video). The technology enabled Facebook to automatically detect when users create or share videos without permission.
Overview:
Source3 (techcrunch.com) was the world’s first platform for end-to-end management of intellectual property in user-generated content (UGC). Prior to the exit, they provided IP recognition, licensing and rights administration services to connect creators, marketplaces and brands and enabled monetization of user content across physical and digital products. The team had previously built successful licensing platforms powering digital music, user-generated videos and 3D printing. Source3 offered scalable, turn-key solutions for global licensing challenges.
Investment Rationale:
We were originally introduced to Patrick, the founder of Source3, by a friend at Google. When we met with the team, it was clear that the engineering talent was world-class and the CEO was “persuasively intense”: he struck us as the type of person that would run through a wall for his company.