Alloy Digital raises $30m

Alloy Digital, owner of YouTube hit Smosh, has raised US$30m in first round funding, which will be used to snap up more rising stars of the online world.

US-based Alloy Digital, whose sister company Alloy Entertainment was snapped up by Warner Bros last year, has been on its own acquisitions spree since 2011.

The firm, which has offices in New York, Chicago and Los Angeles, counts Smosh – YouTube’s most subscribed channel as of January – plus digital studio Generate, Shut Up! Cartoons, B5 Media, Clevver Media and others among its existing assets.

The US$30m Series A investment comes from ABS Capital Partners whose general partner, Deric Emry, joins the Alloy Digital board as part of the move. The firm to date has been backed by Zelnick Media, which acquired the overall business for US$126.5m in 2010.

The cash injection is the latest in a show of confidence in companies with an eye on the YouTube channels space. In December, Maker Studios secured US$36m in a third round of funding, led by Time Warner.

“Alloy Digital made an extremely attractive investment opportunity,” said Emry. “It is at the forefront of the shift in content consumption to digital media. This trend is fundamentally changing the way that entertainment is created, distributed and monetised by delivering interactive entertainment directly to consumers at scale and more economically.”

The firm claims some 12 million YouTube subscribers across its portfolio, which it now intends to build further on the back of the US$30m.

“This funding will allow us to rapidly accelerate future growth by adding complementary, relevant properties and talent appealing to the tastes and shifting consumption behaviors of 12-34 digital consumers,” said Alloy Digital CEO Matt Diamond.

“In just one year, we have built a solid foundation through the acquisition of best-in-class properties that have solidified Alloy Digital as the top digital media and advertising network for this demographic and propelled our owned properties to be among the most watched on YouTube.”

To watch a recent C21TV video interview with Barry Blumberg, executive VP of Alloy Digital and president of Smosh, click here.