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Sesame Street Gets Into Venture Capital

Today’s letter is ‘F,’ as in, Sesame Workshop’s new Collab+Sesame Fund

February 3, 2016

Sesame Street to Invest in Childhood Development Startups

Looks like Sesame Street producer Sesame Studio is getting into the venture capital game. According to Fast Company, the famed children’s television show is establishing a team of people to partner with VC firms in order to invest in for-profit companies in the field of childhood development. Sesame Ventures and its partners have dubbed their $10 million fund Collab+Sesame, and will target childhood development companies from various sectors like Education & Media, Family Development, Educator Tools, Social & Emotional Development, Health & Wellness, and Food.

Among early VC partners could be Collaborative Fund, which aspires to invest in companies that “make the world a better or more interesting place.” Among the companies they’ve backed are Kickstarter, ridesharing service Lyft, household task assistance platform TaskRabbit, and charter school operator  AltSchool, among others. (Incidentally, I first heard about AltSchool when I read a case study Harvard Business School Professor John Kim had written, with whom I’ve worked on another project.)

The Takeaway

At PPM, our clients engage in creative ways to raise capital. Most know that when they come looking for a private placement memorandum (PPM), which we write, their main options are an equity offering (stocks, units) or a debt offering (bonds, debentures, other debt instruments). But there are lots of ways to raise capital, and we encourage and facilitate clients that seek more creative sources of funding.

Sesame Ventures is a perfect example of a non-traditional potential source of capital. We encourage clients to look around their own industries and regions to seek out special opportunities like this. Not only would it be great to work with Sesame Street for all you growing childhood development companies out there. Even better if you want to scale, this new investment organization comes with introductions to VC firms that take an interest in your particular service, product, sector, or way of doing business.

Getting a PPM for an equity or debt offering is a fundamental building block to obtain funding for any entrepreneur that wants to scale. Whether you find a specialty VC or private equity firm to back you or are selling securities on your, a PPM may be necessary. But also don’t forget to look around for grants, startup competitions and prizes, incubators, and other non-traditional sources of capital and funding that can help your business grow.

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