SoftBank-backed Jellysmack eyes global expansion

New York

JELLYSMACK, a startup that got a starring role in SoftBank Group Corp's most recent earnings presentation along with funding from Masayoshi Son's firm, is preparing to scale up operations with acquisitions and a global expansion.

The New-York based company helps online content creators and brands promote their offerings across platforms like Instagram and YouTube, taking a share of revenue in return. Its focus now is on strengthening its operations in Europe, including France, the United Kingdom and Germany, while targeting Mexico, Brazil and India too.

Jellysmack is also looking to invest in or acquire companies that are building the infrastructure for influencers and the social media economy, co-founder Michael Philippe said in an interview, without giving further details. While he declined to disclose specific details of SoftBank's investment, he said the money put Jellysmack among the ranks of unicorns - companies worth US$1 billion or more.

SoftBank founder Son spent six minutes lavishing praise on the startup during his latest earnings presentation, calling it "a 21-century-style creator collective".

"We really believe that we are in a new creator revolution," Mr Philippe said. "The big challenge is that very few make a living of it. And talent is not enough."

Recommendation algorithms are the new gatekeepers and figuring out to how be successful on more than one platform is too time-consuming for most social media personalities, he said. Jellysmack helps artists expand revenue streams by tailoring their content for multiple outlets, including YouTube, Facebook, Instagram, TikTok and Snapchat.

The company plans to spend half of the money it raised from SoftBank on global expansion and split the rest between investing in its technology and acquisitions, Mr Philippe said. BLOOMBERG