8 VC Firms Betting on Hollywood’s Next Act — What They Want

With great risk comes great reward — and when it comes to venture capital plays, there’s potential to make up to a hundred times your money by backing a breakout startup in its early days (also: the potential to lose your investment entirely). And as the entertainment ecosystem continues to evolve at a breakneck pace, those managing VC funds are staying hyper-attuned to investment trends around media, content and audiences. So, after diving into the world of private equity in Hollywood, I check in today with investors on the venture capital side of the business. 

“We’re entering a really interesting, scary, exciting time with AI,” says Will Ward, founder of talent management, production advisory and investment company Fourward. Even if you’re not directly investing in artificial intelligence, he adds, you need to be thinking about how the emerging tech will impact the industries you are interested in. 

And partly in reaction to the rise of AI, Ward, who has past stints at both CAA and WME on his résumé, also expects live events to continue to thrive — but he doesn’t just mean sports and concerts. “I even believe that when an artist paints something, people will actually watch it happen so we know a human made it,” he says.

Along with Ward, I spoke with Seth Hallen, founder and managing partner of Hallstone Ventures, Adam Lilling, PLUS Capital founder and managing partner, and other investors about how backing a company before it’s profitable (or sometimes, before it really even exists) changes return expectations, why there aren’t more VCs funding Hollywood startups and which facets of the entertainment industry they find the most attractive these days. (No, it’s not just AI.)

In this issue:

• 8 VC firms to know now — and where they’re putting their money
• How VC investing differs from private equity plays and which you should be pursuing when
• The massive upside on the right VC bet: “100x is a possibility”
• Why VCs aren’t big on Hollywood studio startups — and what they’re chasing instead
• Four AI opportunities investors see in entertainment — including one that could benefit small creators
• Two key questions one VC asks about every startup pitch
• Why one investor thinks content from space is inevitable