WEBVTT - Investing in Influencer Strategy

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<v Speaker 1>This is Bloomberg Business Week with Carol Messer and Tim

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<v Speaker 1>Stenebek on Bloomberg Radio.

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<v Speaker 2>So, when Carol and I were out in Hollywood earlier

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<v Speaker 2>this month for Bloomberg's inaugural screen Time event, we interviewed Drew,

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<v Speaker 2>a fool of wallows. She is the TikTok star. She's

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<v Speaker 2>got nearly eight million follow ups. So cool, right, very cool.

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<v Speaker 2>But I was struck by something when we saw her. Carol,

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<v Speaker 2>her huge team, multiple managers, agents, social media folks, all

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<v Speaker 2>traveling with her, and it just reminded me. I couldn't

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<v Speaker 2>get her to tell us just how much money she

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<v Speaker 2>made doing this. But needless to say, or suffice it

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<v Speaker 2>to say, being an influencer is big business.

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<v Speaker 3>Yeah, and she's content creator and host of the comments section.

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<v Speaker 3>You probably know her well with all those followers that

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<v Speaker 3>are out there. You know, it's a reminder that this is,

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<v Speaker 3>as you said, big business when it comes to influencers.

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<v Speaker 3>Jess Huntershen and Emily Ward are the co founders of

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<v Speaker 3>Shine Ventures. It's an influencer talent management company. They're branching

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<v Speaker 3>out from focusing on influencers to angel investing with the

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<v Speaker 3>launch of Shine Ventures, which focuses on early stage startup,

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<v Speaker 3>so we got lots to talk about. Just an Emily

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<v Speaker 3>joining us now on Zoom from Toronto. Guys, welcome, Welcome

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<v Speaker 3>to Bloomberg Business Week. Curious. First of all, tell us

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<v Speaker 3>a little about your world and then kind of transitioning

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<v Speaker 3>or adding on to what you do. Shine Ventures Jess

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<v Speaker 3>for Emily, feel free to start.

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<v Speaker 4>Yeah, thank you, thank you for having us. We appreciate

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<v Speaker 4>it and you are right, it is big business. So

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<v Speaker 4>we started first in talent management, so we have Shine

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<v Speaker 4>Talent Group and now Shine Ventures. But with Shine Talent

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<v Speaker 4>Group we started that gosh way back. We talk about

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<v Speaker 4>influencer years being somewhat like dog years. One is seven, right,

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<v Speaker 4>so we started at about nine years ago, which means

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<v Speaker 4>that we're ancient now. But we started in Toronto doing

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<v Speaker 4>very very small scale talent management with a really big

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<v Speaker 4>focus on people in the digital content creator space.

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<v Speaker 1>Can you give us.

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<v Speaker 4>For sure, say some of our our favorite Canadian talent.

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<v Speaker 4>We have the Birds Papaya, We have Alicia mccaville, We

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<v Speaker 4>have just Jamie p Which this is such a funny

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<v Speaker 4>industry because I feel like if you know them, you

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<v Speaker 4>really really know them. If you're kind of, you know,

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<v Speaker 4>if this industry is what you live and breathe, but

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<v Speaker 4>otherwise you might have no idea that these people are

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<v Speaker 4>out here making, you know, lots and lots of money

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<v Speaker 4>and doing all kinds of home things.

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<v Speaker 1>Okay, how much money are we talking here?

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<v Speaker 3>Jima's obsessed with understanding the dynamic.

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<v Speaker 2>I want to know how much money are we talking here?

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<v Speaker 5>Well, all confidential when it comes to our talent, but

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<v Speaker 5>I think, you know, every average consumer can discern when

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<v Speaker 5>they're looking at what some of these social creators are

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<v Speaker 5>doing today that it's not just the collaborations on Instagram

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<v Speaker 5>and YouTube, that the industry has expanded and they're.

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<v Speaker 6>Doing their own product lines. They are doing you know,

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<v Speaker 6>mainstream ads. They're involved in product development with major brands

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<v Speaker 6>as well. You can start to kind of add up

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<v Speaker 6>the dollars yourself.

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<v Speaker 3>It's fascinating. It's just a part of kind of a

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<v Speaker 3>slice of life, right that we are learning more and

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<v Speaker 3>more about. I mean, my husband's obsessed with YouTube channels,

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<v Speaker 3>people who sale and like all the money that they're making,

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<v Speaker 3>Like can we do this?

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<v Speaker 1>I'm like, well, you know, I don't know, probably not

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<v Speaker 1>build up that following you got.

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<v Speaker 3>To build up patrons. Patrons, it's all about patrens. Hey listen.

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<v Speaker 3>So talk to us about though, getting more involved in

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<v Speaker 3>investing in early stage startups. And I'm curious, Emily about

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<v Speaker 3>kind of what you are specifically looking for and where

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<v Speaker 3>you are what you are looking for and where you're

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<v Speaker 3>already to investing some money.

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<v Speaker 6>Yeah. So, as Jess was saying before, like we're rather

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<v Speaker 6>ancient in this industry. It is such a new industry.

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<v Speaker 6>But Shine Talent Group has been around since twenty fifteen,

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<v Speaker 6>and honestly, it was always something in conversations between Jess

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<v Speaker 6>and I that we thought when we got to a

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<v Speaker 6>different point of success, we really would want to be

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<v Speaker 6>investing in other businesses and using the skills that we've

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<v Speaker 6>developed in the talent space, which is truly spotting emerging

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<v Speaker 6>great talent and translating that into the small business world

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<v Speaker 6>as well. So in terms of what we're doing with

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<v Speaker 6>Shine Ventures, we're very much looking at like early stage startups,

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<v Speaker 6>and each year we are going to be focusing on

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<v Speaker 6>a different niche, and that niche will be dictated by

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<v Speaker 6>the trends that we're seeing in our core business and

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<v Speaker 6>Shine Talent Group. So this coming year, huge focus in

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<v Speaker 6>the menstruation through menopause space.

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<v Speaker 2>So Jess, I want to kick it on over to you,

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<v Speaker 2>because the question that I have when it comes to

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<v Speaker 2>what you're investing in in Shine Ventures is why now.

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<v Speaker 2>I mean, we're at a point where interest rates are

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<v Speaker 2>the highest they've.

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<v Speaker 1>Been since two thousand and seven, and.

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<v Speaker 2>Essentially the era of free money is over, So startups

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<v Speaker 2>are going to have a tougher time raising capital in

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<v Speaker 2>this environment and money's quite tighter.

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<v Speaker 4>Yeah, they will, But I think that's why we've always

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<v Speaker 4>been so enamored by the startup phase and you know,

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<v Speaker 4>somewhat still consider ourselves to be in that. But I

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<v Speaker 4>think that's the cool thing about startups is they're so

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<v Speaker 4>scrappy and you know where, like our focus is really

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<v Speaker 4>on investing in the founders who can tell incredible stories

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<v Speaker 4>and get people to like understand what it is that

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<v Speaker 4>they're selling and what need their you know what hole

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<v Speaker 4>in the market they might be fixing. So I think

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<v Speaker 4>startups like where like big big business and interest rates.

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<v Speaker 4>You're right, obviously they're at an extreme high right now,

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<v Speaker 4>but startups have the ability to be incredibly nimble and

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<v Speaker 4>scrappy and that's what we just like. That excites us

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<v Speaker 4>so much about that space. So we're we're excited to

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<v Speaker 4>see what they're going to do.

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<v Speaker 3>And Emily, I'm curious, like what will be the mix

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<v Speaker 3>of the business. So is it that venture and angel

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<v Speaker 3>investing is going to become much more of what you

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<v Speaker 3>guys focus on or is it still kind of a combination.

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<v Speaker 6>Well, I think it will be split. But Shine Talent

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<v Speaker 6>Group has grown tremendously. We have a amazing team, a

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<v Speaker 6>great great sceniorallyadership teams. So Justin and are looking for

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<v Speaker 6>other spaces where we can help to grow and invest.

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<v Speaker 6>And also there is a relationship between the two Shine

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<v Speaker 6>Talent Group and itself. The talent who we represent, a

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<v Speaker 6>lot of them have interests in their own businesses. We're

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<v Speaker 6>going to be taking a keen look in terms of

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<v Speaker 6>the opportunities that they're presenting to us and have a

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<v Speaker 6>different kind of relationship Undershine Ventures.

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<v Speaker 3>Does something you invest in have to have somebody who

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<v Speaker 3>can be an influence or connected to it. I only

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<v Speaker 3>ask because I'm kind of my team kind of knows this.

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<v Speaker 3>I've been obsessed a little bit with Shark Tank and

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<v Speaker 3>it's so interesting that somebody will come with a business

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<v Speaker 3>good idea but just doesn't gain traction, and then they

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<v Speaker 3>talk about either tapping into one of the sharks and

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<v Speaker 3>their social presence and their ability to influence people to

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<v Speaker 3>sit up and take notice and then start helping to

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<v Speaker 3>essentially help the business grow. So I'm curious, Emily, if

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<v Speaker 3>that's something that you guys will think about before you

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<v Speaker 3>make an investment.

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<v Speaker 6>I hear that, and I think where we have delineated

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<v Speaker 6>is about we are looking for people who are good storytellers.

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<v Speaker 6>So that can be through the skill of influencing, you know,

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<v Speaker 6>over the years, or it can just be an incredibly

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<v Speaker 6>passionate founder who has that ability to like bring people

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<v Speaker 6>into their story and have people drawn to follow them along.

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<v Speaker 2>So it's interesting to hear of the timing of this.

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<v Speaker 2>And I'm also wondering about, Emily, if there's we're stuck.

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<v Speaker 3>On high rates right now.

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<v Speaker 1>Yeah, it's like it's like what we spend all day

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<v Speaker 1>talking about.

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<v Speaker 2>I'm also wondering about where we are when it comes

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<v Speaker 2>to the influencer economy because there are so many influencers

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<v Speaker 2>out there, and I'm wondering if there's any kind of

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<v Speaker 2>fatigue coming from consumers, they're like, Okay, well, I get

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<v Speaker 2>that this person has a lot of followers. I get

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<v Speaker 2>that this person, you know, does these brand partnerships, but

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<v Speaker 2>are they actually still effective like they were a few

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<v Speaker 2>years ago.

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<v Speaker 6>Yeah, And I think actually some of what helps us

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<v Speaker 6>sometimes with the fatigue that comes in is it starts

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<v Speaker 6>to create a line between like the high performance talent

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<v Speaker 6>and talent that perhaps are just dabbling in this market itself. Also,

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<v Speaker 6>the style of influencing, the style of content changes over

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<v Speaker 6>the years. So what was working five years ago, nine

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<v Speaker 6>years ago when we began is very, very different than

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<v Speaker 6>what is working with consumers today. So I think the

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<v Speaker 6>talent who aren't don't have the ability to kind of

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<v Speaker 6>change with the times. That way, they do fade out

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<v Speaker 6>and their consumers do lose interest and traction. But the

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<v Speaker 6>whole concept behind influencing, I mean, this has been around

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<v Speaker 6>for like decades and decades and decades. We're just noil

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<v Speaker 6>playing in the space of social media.

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<v Speaker 3>Well, and one thing I want to get to we've

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<v Speaker 3>about a minute left, just come on back in on

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<v Speaker 3>the conversation. In terms of you guys, are Shine Ventures

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<v Speaker 3>focusing on women's the women's health space, in this year

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<v Speaker 3>and talk to us a little bit about what you

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<v Speaker 3>are thinking of targeting that you see there. And we're

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<v Speaker 3>seeing a lot of interesting kind of entrepreneurial ventures and

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<v Speaker 3>innovation happening. Well.

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<v Speaker 4>I think it's also demonstrates like how the two connect,

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<v Speaker 4>like how Shine Talent Group and Shine Ventures connect in

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<v Speaker 4>that we're seeing a huge interest in that kind of

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<v Speaker 4>age demographic of women, Like we're talking the like forty

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<v Speaker 4>five to fifty five demographic on Instagram and TikTok is

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<v Speaker 4>an absolutely booming market with people who have very high

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<v Speaker 4>disposable income and they're getting into that age now where

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<v Speaker 4>they've grown up on social media, like they understand social media,

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<v Speaker 4>they've been a part of that for a long time,

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<v Speaker 4>and they're now getting into that more like menopause stage

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<v Speaker 4>of their life and they want to talk about it.

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<v Speaker 4>So these products that have been very taboo and kind

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<v Speaker 4>of kept behind closed doors and we didn't really discuss

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<v Speaker 4>them publicly, we've seen powerhouses in the last number of

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<v Speaker 4>years start to talk about menopause in a really open way.

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<v Speaker 4>So that's where we're really like taking that trend data

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<v Speaker 4>and looking at like, Okay, what are the businesses going

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<v Speaker 4>to be that come as a result of that, and

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<v Speaker 4>what are the business is going to be that will

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<v Speaker 4>launch themselves on social media and create really aging and

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<v Speaker 4>interesting conversation consumers will want to take part in.

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<v Speaker 3>Well fun to check in with you guys, Jess Hunterton

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<v Speaker 3>and Emily Ward. They are the co founders of Shine Ventures.