Firms unite for post-pandemic projects

Creative Artists Agency and the Silicon Valley capital firm New Enterprise Associates announced a new investment partnership that aims to support early-stage businesses centered on commerce, content and media.

The two companies formed Connect Ventures, which launches this week with $100 million, with plans to invest up to $400 million. Its initial focus will be on supporting projects in a postCOVID-19 environment.

While Beverly Hills-based CAA will pull resources and connections in the entertainment and sports industries, New Enterprise Associates, which has invested in technology and healthcare companies globally, will provide experience in investing and companybuilding.

“In creating Connect Ventures, we’re bringing together two proven platforms built on decades of experience to unlock a really exciting opportunity set that is emerging at the intersection of culture and commerce, as well as data and software,” said Tony Florence, general partner and head of technology investing at NEA.

NEA has entered the world of media entertainment with investments in Buzzfeed and Masterclass, among others.

As talent agencies struggle to adapt to the rise in streaming platforms and a changing media industry, many have dipped their budgets into content creation to expand their reach. CAA formed the TV company Wiip, while William Morris Endeavor created Endeavor Content, which invests in production companies and television shows.

Connect Ventures’ first investment is in Spire Animation Studios, a feature studio founded by producer Brad Lewis (“Ratatouille,” “How to Train Your Dragon: Hidden World”) and P.J. Gunsagar, who cofounded Los Angeles-based Prana Studios and multiple other tech-based media companies.