Revolution VC: AOL's Steve Case and the Future of Media

Revolution, a venture capital growth equity fund based in Washington D.C., is a unique firm founded by Steve Case, the former CEO of AOL. The firm takes a "stage agnostic" approach to investing, supporting companies from early stages through their lifecycle. Revolution's investment strategy focuses on companies that have the potential to disrupt industries and create significant change.

• Revolution is funded entirely by Steve Case and invests in a wide range of companies across various industries.
• The firm's investment strategy is driven by the belief that "big companies just don't innovate the same way" and that disruption is essential for long-term success.
• Revolution is a national practice with a strong track record of supporting successful companies.

AOL/Time Warner Merger: Lessons Learned

Revolution's founder, Steve Case, has firsthand experience with the AOL/Time Warner merger, one of the largest and most controversial mergers in history. The merger was intended to combine AOL's online presence with Time Warner's media assets, but it ultimately failed to achieve its goals.

• The merger was considered a strategic move to capitalize on the growing trend of online content consumption.
• However, the execution of the merger was flawed, resulting in a significant loss of value for both companies.
• Case believes the AOL/Time Warner merger was a good idea but failed due to poor execution.
• He draws parallels between the AOL/Time Warner merger and the potential Comcast/NBC merger, suggesting that while both mergers have strategic potential, they face challenges in execution.

Revolution's Investment Portfolio: A Focus on Disruptive Innovation

Revolution's investment portfolio showcases the firm's commitment to backing companies that are transforming industries.

• Revolution Money, a company that aimed to disrupt the traditional consumer finance industry, was one of their early investments.
• The firm's investment in ZipCar, a company that pioneered car rental as a service, exemplifies their focus on disruptive innovation in the transportation sector.
• LivingSocial, a social buying platform, was another early investment by Revolution and it became one of the leading players in the group buying market.

LivingSocial: Revolution's Investment in the Group Buying Market

Revolution was the first investor in LivingSocial, a social buying platform that was founded by four entrepreneurs. The firm was attracted to the company's potential to leverage social networks to drive commerce.

• LivingSocial quickly grew to become one of the most successful players in the group buying market.
• The firm recognized the importance of "social" in driving commerce and the role it played in spreading successful deals.
• Revolution believes LivingSocial is well-positioned to continue its success in the group buying market by educating merchants on the value of social buying and maximizing its reach.

Steve Case and Startup America: A Focus on Entrepreneurship

Beyond Revolution, Steve Case is actively involved in fostering entrepreneurship through initiatives such as Startup America. This Obama administration initiative, spearheaded by Steve Case, is aimed at stimulating economic growth by supporting entrepreneurs and startups.

• Startup America is a platform that provides resources, mentorship, and funding opportunities to entrepreneurs.
• The initiative seeks to create a more vibrant entrepreneurial ecosystem in the United States.
• Steve Case's involvement in Startup America reflects his commitment to supporting the next generation of entrepreneurs and promoting economic innovation.

Revolution's Perspective on the Future of Media

Revolution's investment strategy and experience in the media industry provide valuable insights into the future of media consumption.

• The traditional model of ad-supported television is facing challenges as consumers adopt new ways of consuming content.
• Companies like Netflix are disrupting the traditional television landscape by offering on-demand streaming services.
• Revolution believes that the future of media will be characterized by a greater emphasis on personalization, consumer choice, and innovative monetization models.

Revolution and the Future of VC

Revolution's approach to venture capital reflects broader trends in the VC industry.

• There is a growing focus on supporting companies that are transforming industries rather than simply making incremental improvements.
• The role of "stage agnostic" investment strategies is increasing as investors seek to support promising companies throughout their lifecycle.
• The VC industry is evolving to embrace new technologies and approaches to investing, driven by the changing landscape of innovation.