Why Volition Capital invested in Doing Things Media (DTM)
As internet platforms enable the largest influx of digital entrepreneurs and creators in history, Volition has been investing in platforms that provide these entrepreneurs with liquidity through consolidation. The common denominator for these internet platforms is out-of-the-box infrastructure and immediate scaled distribution. Through consolidation, there is the opportunity for back-office efficiencies and the ability to invest to drive revenue growth.
Core to our consolidation thesis is finding markets with underlying secular growth. This allows for organic growth of acquired assets and an increasing pool of potential acquisition targets. After outlining all the internet platforms our team could generate, one of the sectors that stood out to us was social media. Not only does this represent one of the largest existing markets but it is also one of the fastest-growing markets, relative to other internet platforms.
Instagram has over two billion users. That is roughly 25% of the entire global population. Let that sink in—there are few markets with this type of scale. Despite this scale, Instagram users are still growing ~19% annually as younger generations join social media and global smartphone adoption increases. This has also led to faster adoption of new social platforms. It took Instagram eight years to reach one billion users, while TikTok passed this milestone in just five years.
The scale and growth of social platforms led our team down the path to find a company that also realized this unprecedented opportunity. We are thrilled to announce our recent internet consolidation investment in Doing Things Media, a native social publisher that owns and operates more than 25 brands across social platforms.