Influencer Marketing Pioneer Acquired By Fullscreen
May 4, 2018 |
Want to increase the value of your business by up to 71%?
Take the 13-minute survey and get your Value Builder Score
About this episode
Subscribe:
Pete Borum practically invented the term “influencer marketing.” So how did Borum raise $15 million dollars and attract multiple acquisition offers in an industry that didn’t exist before he showed up?
Pete Borum co-founded Reelio, which is an influencer marketing platform that enables brands, agencies, and publishers to find social media influencers to endorse their products.
While Borum and his three co-founders forecasted the trend of influencer marketing, their major challenge was convincing advertisers who were used to controlling every aspect of a brand’s marketing, to turn over content creation to celebrity YouTubers, Instagrammers, and Snap Chatters.
Despite this challenge, they managed to raise $15M in capital from investors, and the company grew. Borum had acquisition conversations with several strategic buyers and was bought in 2018 by Fullscreen, which is owned by Otter Media, a joint venture between AT&T and the Chernin Group.
In this episode, you’ll learn:
- Reasons to loop in investors during the selling process
- Why having a “Best Alternative To A Negotiated Agreement” (BATNA) is an important step in the exit planning process
- How to influence the way an acquirer thinks about your company’s valuation before getting a term sheet
Borum knew that digital media was poised to skyrocket and created Reelio to meet the rising demand for influencer marketing. Recognizing the growth potential of your industry is one of the exercises from Module 2 of The Value Builder System™. Get started for free right now by completing Module 1.
Our guest
Pete Borum is the Co-Founder and CEO of Reelio, a data-driven influencer marketing platform that enables brands, agencies and publishers to find and work with the right social media influencers at the right price. Prior to co-founding Reelio, Borum was the Director of Communications at Revstone, where he led the brand consolidation of 18 portfolio companies in 4 countries. Before that, Borum founded Aspirént, a strategic consulting firm whose projects included planning and execution of a five-borough direct marketing strategy for Michael Bloomberg’s successful 2009 mayoral campaign.
Related to this topic
With Clients Like Starbucks And NIKE, Blast Radius Was Irresistible To Acquirers
Digital marketing agency Blast Radius went from 10 people to more than 400 in less that 10 years, ultimately attracting the attention of WPP who acquired them in 2007. Here’s how they did it.
Is Your Partnership A Ticking Time Bomb?
John Maddox co-founded the digital agency Ten Fast Feet in the depths of the financial crisis. Despite his timing, Maddox was able to grow the business to $2.3 million in sales by 2013, when he got a call that would change his life forever.
How To Recover (and thrive) After Splitting From Your Co-Founder
Four years ago Nexalogy CEO Claude Théoret was counting the employees he had to lay off. His company had burned through their $600,000 seed round of investment and he was running out of cash. An ugly split with a former co-founder had divided his team, and Théoret had to turn to his wife for a $40,000 loan.
From Food Stamps To A Seven-figure Exit
While Michael Pedone survived off of food stamps as a kid, he dreamed of living a lifestyle where money wasn’t scarce. Fast-forward a few decades, and Pedone sold his first company for $1.2MM.
Aaron Houghton sold iContact in 2012 for $180 million. The first round of growth was financed by convertible debt, which Houghton recommends for its simplicity. Hear how he parlayed an initial investment of $250,000 into a $180 million exit.
How One Pivot Doubled The Value of This Business
James Garvey grew Objective Loyalty from a standing start in 2005 to $2.5 million in EBITDA. When he and his partner decided to sell they were able to quickly double the value when they switched sell tactics.
Shark Tank's Kevin O'Leary on How to Structure Your Earn-out
Kim Walsh-Phillips founded Elite Digital Group, a marketing agency for clients looking to leverage social media. Walsh-Phillips built her firm to $3.2 million in revenue, but she got stuck when she reached 30 clients.
Nathaniel Broughton grew Spread Effect to a $4 million company in only four years — so why would he sell for a rock bottom multiple?
How a Simple Strategy Led to a 35% Higher Valuation for Conversio
In 2014, Adii Pienaar started an email marketing platform for retailers, which became Conversio. By 2019, Pienaar had $2 million in revenue and 14 employees.
What To Do When Getting Out Means Staying On
A service-based company can be a tough sell, so Eric Enge found a buyer while his best asset was still on the table: himself.
Bobby Martin had built First Research up to $6.5 million dollars in revenue when he sold the business to a Fortune 500 company for 26 million dollars.