When we look for new investments, we tend to focus on industries where historical inefficiencies exist. In other words, industries that have failed to leverage new technology, and, as a result, find themselves struggling to prop up a broken model. In simple terms, the bigger the inefficiency, the bigger the opportunity for disruption.
In one shape or form, this pattern of inefficiency and disruption winds its way through much of our portfolio. Two clear examples are Victors & Spoils (using technnology to disrupt the ridiculously inefficient advertising industry) and Qual-Vu (using video technology to provide customers timely, accurate and affordable qualitative research).
Another trait shared by these two companies is the use of technology to leverage a crowd of experts. For lack of a better word, “crowdsourcing.” Increased communication and the formation of online communities has made crowdsourcing an incredibly powerful tool. Those companies willing to access talent outside their four walls are finding themselves well ahead of the game.
Kapost provides online publishers with a “virtual newsroom.” Through the newsroom, publishers are able to source content from external providers and manage the process with a set of digital tools that simplify certain pieces of the publishing process such as scheduling, solicitation of content, contributor ranking, and payment.
The news industry is not ripe for disruption — it is already in the process of being disrupted. The success of publishers such as the Huffington Post and the rise of publishing platforms such as Associated Content have clearly paved the way for a more efficient model where content is not created by staff writers, but rather by freelancers, experts or thought leaders residing in a virtual community. We believe that Kapost will play an integral role in this transition, allowing everyone from large media conglomerates to niche publications to source and publish better content in a far more cost effective manner.
Let the disruption begin.