ADAM LILLING

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ADAM LILLING

Plus Capital

Los Angeles

When Plus Capital Managing Partner Adam Lilling sat down with DanceOn Chief Executive Amanda Taylor, he got more than a good story.

“She gave me her vision and she talked about her execution,” Lilling said. “Instantaneously, I knew she was somebody I wanted to bet on.”

He said that he was impressed with Taylor, who has a background in Broadway business, because she was able to speak knowledgeably about her company’s product, technology and business model. Chief executives usually have a narrower area of expertise.

“She had that great combination,” he said.

DanceOn produces YouTube content ranging from reality competitions to scripted shows and also serves as a medium for user-generated content. The network’s programming receives more than 70 million views every month. YouTube selected DanceOn for inclusion in its $100 million original content initiative that began in 2011. Taylor’s co-creators include Machinima Chairman Allen DeBevoise as well as Madonna and her manager, Guy Oseary.

Even though he doesn’t consider himself a dance aficionado, Lilling said he understood what Taylor was trying to accomplish from a business perspective.

“Dance is a large vertical. You have incredibly large markets around this,” he said, noting that despite perceptions that dance might be more female oriented, the network has a male audience, too.

Lilling had been looking for investment leads in the media space, preferably in the YouTube ecosystem. He mentioned this to DeBevoise, who introduced him to Taylor.

His initial enthusiasm after sitting down with Taylor was followed by weeks of due diligence before the firm was ready to officially commit.

But there was a catch. Lilling knew he wouldn’t be able to lead the seed funding round by himself, which he made clear to Taylor.

“I don’t have a large reserve ratio, he explained. “I didn’t want to overcommit.”

So, during the summer, Taylor took DanceOn through the Launchpad LA acceleration process, which Lilling said allowed the startup to introduce itself to the investment community before seeking capital.

“Amanda had a spotlight on her while she was at Launchpad,” said Lilling, who co-founded Launchpad. “She just maximized it.”

Not long after finishing the accelerator, Taylor brought AMC Networks and a number of individual investors to the table. He matched AMC’s investment, but declined to specify how much each party contributed.

DanceOn has plans to introduce mobile and subscription campaigns as income generators in the near future. Lilling, now on DanceOn’s board, said new funding rounds would likely take place by the end of the year.

“There are multiple revenue streams that are available,” he said. “I’m beyond excited.”

Lilling pointed out that it’s rare for Plus Capital to lead a seed round as he and his investors typically like to join after they know that early financial backers have done their due diligence. As such, Taylor had a high bar to clear, but he said her thorough preparation and the quality of her team sealed the deal and he gave her the money from his year-old fund.

“Out of 20 or 25 deals we’re going to do, we’ll lead two to three total,” he said. “This is by far the largest check I’ve written for a single investment in a company.”

– Omar Shamout

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