Podcast Summary
Revolutionizing Location Scouting with Technology: Gigster, a tech-driven location scouting marketplace, is disrupting the industry by providing a non-industry approach to finding and booking locations for film, photo shoots, events, meetings, and weddings.
Technology is revolutionizing traditional industries, such as film and event production, by making location scouting more efficient and accessible through platforms like Gigster. Co-founders Hank and Yuri, who are tech entrepreneurs, identified a need for a non-industry approach to location scouting and created a unique marketplace that allows users to search for and book locations based on specific themes and categories. The business has been successful, with millions of dollars flowing into the company, and the platform has expanded beyond film and photo shoots to include events, meetings, and weddings. By leveraging technology and entrepreneurial thinking, Gigster is disrupting the traditional location scouting industry and making it easier for producers and event planners to find the perfect location for their projects.
Lessons from Failed Businesses: Understanding Product-Market Fit and Cultural Realities: Identifying opportunities for innovation and disruption in industries can lead to successful businesses, but understanding unique industry needs and cultural realities is crucial for success.
Building a business on another platform can be risky as they have the power to shut it down. This was a lesson learned from a failed SaaS product called "Vitamin," which automated social media actions for businesses but was shut down when social media platforms began cracking down on automated actions. Another important lesson was the importance of product-market fit and understanding the cultural realities that make a business idea viable. The gigster business idea came from observing the archaic business flow in the location industry for film production, which lacked a platform for finding and booking production locations. It's crucial to identify opportunities for innovation and disruption in industries that have been run the same way for decades. Additionally, it's essential to understand the unique needs and considerations of each industry, as what works for one may not work for another. For example, production locations require more resources and have a larger impact compared to short-term rentals like Airbnb.
Services for larger productions and financial benefits for homeowners: Homegrown film production platform offers services for larger productions and financial benefits for homeowners through short-term rentals.
Producing film or video content at home using a short-term rental platform can be challenging for larger productions due to logistical issues and the need for professional handling. This led to the creation of a services element in the business to cater to larger productions, creating a comprehensive platform for all types of content creators. Additionally, homeowners can benefit financially from renting out their properties for filming, with potential tax advantages in certain locations. Every startup, including those in the film industry, needs business insurance. Insurances such as cyber, D&O, E&O, and EPL are essential for protecting against various risks. My friends at In Broker offer affordable and transparent insurance options, making the process quick and easy. Don't neglect this crucial step in starting a business.
Focusing on supply is crucial for marketplace success: To build a successful marketplace, focus on acquiring a large supply of locations to attract demand and generate revenue through demand, not ads.
When building a marketplace, focusing on supply (locations) is crucial to attracting demand. The speaker shared their experience with their business, which started as a consumer business, then a tool, and finally a marketplace. They mentioned that the odds of success are better with a marketplace once the flywheel is moving. However, getting to that point involves dealing with the chicken and egg problem and building trust with suppliers. The speaker mentioned having close to 10,000 locations on their platform and shared their early struggles in acquiring these locations. They built an FAQ section, partnered with location agencies, and relied on inbound demand. They also emphasized that their revenue is not driven by ad sales but by the demand generated by having great locations. To increase the supply, they have scouts out looking for new locations, but they have not hired them with a commission-based system. They acknowledged that early on, some scouts saw them as competition, but they have since clarified their roles and have been successful in growing their supply.
Partnering with location scouts for organic growth: The company grew organically by partnering with existing location scouts and filled specific production needs, setting them apart from traditional tech startups in the film industry.
The company has grown organically by partnering with existing location scouts and empowering them, while also filling specific needs for productions with unique requirements. The company was self-funded for the first three and a half years and only sought external funding when they had a solid business model and knew their costs. They found out about a funding opportunity through Remote Demo Day and saw it as a good time to expand their inventory due to the vacancies caused by the pandemic. The company's approach to growth and partnerships sets them apart from traditional tech startups and allows them to cater to the unique needs of the film industry.
Leveraging Networks for Investments: Building relationships and joining syndicates can lead to valuable investments and access to a network of smart individuals. Effective communication during demo days can efficiently engage potential investors.
Building relationships and reputation in the investment world can lead to valuable opportunities. The speaker shared an experience where they were able to secure an investment from a well-known investor, Jason Calacanis, after Yuri, another investor, expressed interest. This process involved reaching out to mutual connections and participating in a remote demo day with Calacanis' syndicate. The speaker emphasized that the value of joining a syndicate goes beyond just the financial investment, as it provides access to a network of smart and engaged individuals who can offer valuable insights and connections. The three-minute presentation style and Q&A session during the remote demo day allowed for efficient communication and immediate engagement from potential investors. Overall, the experience highlighted the importance of building relationships and leveraging networks to secure investments and grow a business.
Leveraging a syndicate of accredited investors for funding opportunities: Building a network of accredited investors through a syndicate can lead to larger funding opportunities for businesses, especially for those with established unit economics and returns. Alternative investments, like art, can also provide a hedge against inflation and potentially outperform traditional investments.
Building a strong network of accredited investors through a syndicate can lead to significant funding opportunities for businesses. With a larger pool of investors, businesses can raise more capital and have the confidence to plan for aggressive growth. This approach is particularly effective for established businesses with known unit economics and returns. The importance of trust and relationships in the business world cannot be overstated, especially when trying to break into larger organizations. Masterworks.io provides an alternative investment opportunity for those looking to hedge against inflation by investing in multi-million dollar paintings from renowned artists. This investment not only protects against market volatility but also has the potential to outperform traditional investments like the S&P 500. Overall, having a solid business plan, a strong network, and alternative investment opportunities can lead to financial success and confidence in the business.
Exploring the Intersection of Art Investing and High-Value Home Rentals: Masterworks.io democratizes art investing, while high-end homes offer lucrative rental opportunities. Both industries present unique challenges and opportunities, with Masterworks aiming to navigate potential damages from content production.
Masterworks.io is making art investing accessible to everyone, regardless of accreditation and knowledge about art. They offer custom portfolios managed by experts. On the other hand, high-end homes used for photo shoots, film productions, or streaming content can rent for thousands to tens of thousands of dollars per day. While professional productions have insurance in place, the impact of content houses and influencers on homes is less clear. Masterworks aims to service this new way of looking at TV and figure out how to handle potential damages. The accessible art investing and high-value home rentals present unique opportunities and challenges.
New Reality TV Shows for Gen Z: TikTok Social Media Houses: TikTok social media houses represent the new reality TV shows for Gen Z, offering investors potential returns before public listings, but concerns about disruption and privacy remain.
The content creation industry is evolving rapidly, with new players like TikTok social media houses emerging as alternatives to traditional production methods. Neighbors' concerns about disruption and privacy are major considerations for these houses, which are seen as the new reality TV shows for Gen Z. The industry is still figuring out the logistics, including insurance needs and considerate location choices. Airbnb, the closest comparison, has not yet ventured into owning inventory. Our investment platform allows accredited investors to invest in promising startups before they go public, with successful examples including Beyond Meat and Lemonade. The future may see brands or platforms owning content houses for creators, offering more control and potentially greater returns on investment.
Companies acting as industry matchmakers: Successful companies during economic uncertainty don't hold inventory or overhead, allowing for constant experimentation and expansion into new markets, like Airbnb, Uber, and a production and events company.
Companies that act as matchmakers in the industry, rather than holding inventory or overhead, have been successful during times of economic uncertainty. This was seen with companies like Airbnb and Uber, who were able to scale their supply and demand during the pandemic by not needing drivers or properties when demand was low. Similarly, the company being discussed, which focuses on production and events, aims to experiment with different offerings while keeping costs low by not having to purchase inventory outright. This business model leaves decisions to the buyers and sellers and allows for constant experimentation and expansion into new markets. Additionally, Nexa 3D, a 3D manufacturing innovator, offers customers significant productivity advantages and cost savings, making it a promising investment opportunity.
The film industry's V-shaped recovery from pandemic disruptions: Despite pandemic disruptions, high demand for content fueled a surge in smaller productions and eventually the return of larger ones. Innovative safety protocols enabled continuation of shoots.
The pandemic led to a sudden halt in production, but the industry quickly bounced back with a V-shaped recovery. Despite various cancellations and reschedulings, the demand for content remained high, leading to a surge in smaller productions and eventually the return of larger ones. The industry adapted to the challenges posed by the pandemic with innovative safety protocols, enabling productions to continue. Seasonality patterns persisted, with different cities having distinct production rhythms. Tom Cruise's safety protocol rant sparked industry-wide discussions, but production companies proved to be more adaptive and inventive than anticipated. Overall, the pandemic presented unique challenges, but the industry's resilience and quick response ensured its continued growth.
Innovation during challenging times: Companies must adapt and innovate while maintaining quality and respecting rules to thrive during challenging times.
During challenging times, the drive to find solutions and maintain productivity can lead to innovation and business survival. This was evident in the film industry's response to the COVID-19 pandemic, where remote telemedicine and other adaptations became necessary. However, it's essential to maintain professionalism and respect rules to ensure a quality production experience and avoid potential shutdowns. In the case of Tom Cruise's outburst, it was a response to rule-breakers jeopardizing the entire production. The world has seen unprecedented changes, with companies like Clubhouse Media Group thriving in the digital content space. It's crucial for businesses to adapt and innovate while maintaining quality and respect for rules and regulations.
Gigster Expands Team, Seeks Investment for Growth: Gigster, a startup in the production industry, is expanding its team with talented individuals and seeking investment to triple revenue.
Gigster, a startup that provides software solutions for the production industry, is looking to expand its team with talented individuals in the production and location scouting sectors. These individuals will have the opportunity to experience the excitement of working in a startup environment while potentially earning equity. Gigster aims to triple its revenue with the recent investment, and if successful, may seek further investment from the syndicate. The company is seeking startups with revenue between six to low seven figures and strong teams for potential investment. The syndicate, which connects investors with startups, is experiencing high demand and may need to limit new members or increase the membership fee to manage inventory.
![Alex Moazed – Building Modern Monopolies - [Invest Like the Best, EP.25]](https://www.podcastworld.io/podcast-images/invest-like-the-best-with-patrick-o-shaughnessy-3pmywn1q.webp)
