A24 has recently closed an investment round led by Thrive Capital, a New York-based investment firm founded by Josh Kushner. The indie distributor will see Kushner joining its board of directors, marking a significant development in the company’s funding structure. In addition to Thrive Capital’s investment, the company also received increased support from existing investors such as Ken Fox’s private equity firm Stripes and investment fund Neuberger Berman. This marks the company’s second successful fundraise, with the previous round in 2022 securing a $225 million equity investment led by Stripes, valuing A24 at $2.5 billion.
While the specific dollar figure of the recent fundraise was not disclosed, Deadline reports that the company’s valuation has increased by 40% since the previous round, now reaching over $3.5 billion. This substantial increase in valuation reflects the confidence investors have in A24 and its growth potential within the entertainment industry. The company has not provided detailed information on how it plans to utilize the funds raised, but sources suggest that it will be used to invest in and expand production and distribution capabilities. Additionally, A24 plans to continue its work on initiatives beyond the screen, including ventures into music, publishing, consumer products, and live theater.
Aside from its core distribution business, A24 has made strategic investments in complementary businesses such as production and management firm 2AM, makeup and skin care brand Half Magic, and NYC’s Cherry Lane Theatre. These diversifications indicate the company’s commitment to expanding its footprint across various sectors within the entertainment industry. Furthermore, A24’s partnership with Thrive Capital brings added expertise and resources to fuel its growth and support groundbreaking storytellers.
Despite the influx of external investment, A24 founders Daniel Katz, David Fenkel, and John Hodges, along with the company’s employees, maintain a significant majority ownership. This ownership structure ensures that the original vision and values of the company remain intact while also allowing for strategic partnerships and collaborations to drive future success. With a premium library of over 150 films and 50 television series, including critically acclaimed titles like “Moonlight” and “Euphoria,” A24 has garnered a loyal fan base and numerous awards, further solidifying its position as a leading player in the entertainment industry.
As A24 looks towards the future, the additional funding secured through this investment round will enable the company to continue pushing boundaries and redefining entertainment for the modern age. With a focus on fostering creativity, business innovation, and technological advancements, A24 aims to expand its reach globally and bring diverse stories to audiences worldwide. The collaboration with Thrive Capital and other key partners underscores A24’s commitment to staying at the forefront of industry trends and supporting emerging talent in the ever-evolving entertainment landscape.
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