Incubation Venture Partners, the VC arm of Incubate Group Corp., has formed a venture capital fund to finance the development of original creative properties like video games, toys, television programs and graphic novels. It's called the Azcatl Seed Capital Fund, and is capitalized with up to $20 million.
Incubation Venture Partners LLC, the venture capital arm of Incubate Group Corp., announces that it is in the process of forming its first fund with qualified accredited investors, the Azcatl Seed Capital Fund I, a potential $20 million dollar venture capital fund to finance development of original creative properties, including video games, toys, television and graphic novels. The management of the fund has currently signed ten Letters of Interest and is actively exploring funding a variety of opportunities in the entertainment industry. The Azcatl Seed Capital Fund will support early stage development of new cross-media or transmedia entertainment properties by making equity investments directly into production companies or into intellectual property holding companies owned by creators. Incubate Group actively works with each creator before, during and after funding, assisting them to maximize each property's potential.
The Azcatl Seed Capital Fund derives its name from an Aztec myth about a little red ant who played his part to save the world. According to the story, Quetzalcoatl created humanity but forgot to create a way to feed them. He searched fruitlessly for a way to feed his creation, and eventually discovered something amazing: a little red ant effortlessly carrying a kernel of corn ten times bigger than his tiny body. After much negotiation, Quetzalcoatl convinced the ant to show him the ant's secret stockpile and found an endless supply of food, thereby saving humanity.
“Access to capital for creators seems to be the largest issue facing the media industry today,” said Peter Leahy, CEO of Incubate Group Corp, “and this is especially an issue for African-American, women, Latino and other diverse creators. By providing both venture capital funding and access to cutting-edge business development tools, we plan to reduce risk and better support creators in making the best creative and business decisions in the earliest stages of production.”
The backers of the Azcatl Seed Capital Fund will be looking to support products and brands in underserved markets and thereby capture the opportunity to develop original market-leading franchises. To that end, Incubate has identified market opportunities for new children and family-oriented properties as well as those developed for adults. Investment opportunities the fund managers are currently reviewing include electronic games, television, webisodes, movies, collectible card games, hobby games, graphic novels, books, licensed products, toys, music and online websites and communities.
“Azcatl Seed Capital Fund will actively support innovation in design, business models and content,” said Peter Leahy. “How people get their media is changing. With innovations like video on the internet, digital distribution via Xbox Live and convenient web browsing on the iPhone, people can increasingly access their favorite media anywhere and on demand. We believe our model of venture capital funding