Arlington’s Storyblocks has struck a deal to sell to private equity firm Great Hill Partners, more than a decade after the digital content company’s launch as a stock video platform.
The parties did not disclose a purchase price in their announcement Thursday, and a Storyblocks spokesperson declined in an email to share terms of the deal.
The transaction gives Storyblocks access to more capital to expand its stock media marketplace — now comprising music, effects, photos and other multimedia, as well as video — and add tools for its customers, the company said. And it comes amid heightened demand for the firm’s library; digital content downloads have more than doubled since the start of the year, it said.
That’s because stay-at-home orders during the coronavirus pandemic have prevented videographers and photographers from being able to shoot their own footage. Storyblocks has not felt a negative financial impact from Covid-19, said CEO TJ Leonard in April, though he declined to disclose revenue.
But we know the company took in $30 million in subscription revenue in 2017 and shot for $40 million the following year, the Washington Business Journal reported at the time. Its big-name customers have included NBC, The Weather Channel and Vice Media, among others.
Under the deal, Storyblocks will move forward with its brand and existing staff, which now comprises 115 people, the company said in an email Thursday. The content creation company has added 10 people since the end of April, following 19 new hires starting in March. The long-term goal, Leonard told us in the spring, is to build out its product and engineering teams, as well as its marketing and sales staff.
“We have seen dramatic changes to workflows for customers ranging from freelancers to small businesses to major production studios in recent years as they adapt to an ever-increasing demand for high-quality video content,” Leonard said in a statement Thursday. “We are excited to partner with the Great Hill team because we share the belief that creatives are hungry for a new model to meet these new needs.”
Storyblocks isn’t Great Hill’s first D.C.-area investment; the Boston firm has also backed Fairfax custom printing company CustomInk. Its portfolio includes about 75 high-growth companies across health care, fintech, software, digital and consumer sectors — with investments ranging from $25 million to $500 million. Great Hill has raised nearly $8 billion in commitments, it said.
“Flexible, affordable, high-quality content has become a prerequisite for individuals and creative teams looking to leverage social media and video platforms,” said Michael Kumin, managing partner at Great Hill, in a statement. “Storyblocks is uniquely positioned as a dynamic category leader to serve creatives as the industry continues to evolve.”
Storyblocks previously raised funding from Updata Partners, QED Investors and North Atlantic Capital, since its debut as VideoBlocks in 2009. The company had raised $8 million from North Atlantic Capital in June 2015 and $10.5 million in 2012 from Updata Partners and QED Investors.
