Chris Satchell

DULCEDO Management bought Node App for $13M. This marks Dulcedo’s 5th acquisition since 2016. Let's break it down... ---SELLER: Node--- • AI-powered influencer marketing platform • Mission = bridge gap between small businesses and micro-influencers • Founded 2019 by Armin Faraji, Mackenzie Dérival ✌🏾 • Initially focused on restaurants, expanded to ecom brands • Focuses on Instagram, TikTok campaigns • 2021 raised $1M seed round from Techstars, Alchemist, strategic angels ---TECH OVERVIEW: Node App--- • In 2022 selected for Google for Startups Accelerator program • Pioneered a machine-learning technology to revolutionize agency workflows by improving influencer discovery and data reporting • “Creators can participate in brand campaigns in 3 clicks via Node, as opposed to pitching/negotiating with brands” • “Brands can create a campaign and begin interacting with influencers within 5-10 min of landing on Node's website” ---PERFORMANCE HIGHLIGHTS: Node App--- • Over 2,000 clients across North America • Generated “tens of millions of social media impressions” • Clients incl Kraft, Samsonite, Jarritos, St-Regis, Marriott • Has activated 5,000+ content creators in campaigns • Creators include A-list models, elite athletes, actors, social influencers • During pandemic scaled from 30 to 800 brands five months ---BUYER: Dulcedo Group--- • Global talent mgmt and digital marketing agency • 4 divisions – Models, Sports, Gaming, Influencer • Offices in Montreal and Toronto • Founded 2008 by CEO Karim Leduc • 3 co-owners incl founder • 70+ team members ---M&A HISTORY: Dulcedo Group--- • 2022 acquired C4G, a startup esports marketing agency • 2016 acquired 4249, an influencer relations agency • 2023 acquired Influence + All Management • 2023 acquired Sundae Creative Agency • 2024 acquired Node ---DEAL DETAILS--- • $13M purchase price • No other details were disclosed ---DEAL VALUE PROP--- • Give Node added funding, resources for growth • Access to Dulcedo's 300M network following  • Access to Dulcedo’s diverse creator roster to support IM campaigns across various industries • Accelerate development of AI-enabled tools to enhance the IM campaign lifecycle ---POST DEAL OPS--- • Dulcedo CEO will serve as interim Node CEO • Node co-founder Armin Faraji moves to COO • Node co-founder Mackenzie Dérival remains as CPO ---WHAT ELSE I FIND INTERESTING--- I'll write more about the deal in my Friday newsletter. I'll estimate Node's revenue and EBITDA, and discuss valuation multiples and likely deal structure. Signup link in comments below 👇 -- I'm the founder of RockWater Industries. We do M&A and strategy advisory for media, agencies, and creator economy. My DMs are open.

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#FakeMusicStreams #AI “The US Department of Justice has indicted an individual over the suspected use of artificial intelligence to generate large amounts of fake music streams and generate more than $10 million in royalties. The arrest marks the first criminal case involving artificially inflated music streaming, according to the US Attorney’s Office for the Southern District of New York, which announced the indictment on Wednesday (September 4) alongside the Federal Bureau of Investigation. Michael Smith, a 52-year old resident of North Carolina, allegedly created “hundreds of thousands of songs” using AI. He then employed automated programs to create numerous fake accounts or “bots” to stream the songs billions of times on streaming platforms like Amazon Music, Apple Music, Spotify, and YouTube Music. At one point, Smith estimated that he could use the bots to generate about 661,440 streams per day, generating annual royalties of $1,207,128, the indictment read, citing an email that Smith sent himself in October 2017. According to the indictment, Smith employed a number of measures to boost streams, including using fake email accounts and cloud computer services, and paying for Family plans on streaming platforms. “Although Smith was himself a musician and had access to a small catalog of music that he owned, that catalog was not nearly large enough for Smith’s streaming fraud,” the indictment read. Smith is also believed to have attempted to sell his fake streaming plan to other musicians, offering to fraudulently generate or share royalties with him in exchange for fake streams of their music.” Read the full article for more: #Spotify #Streaming #Fakes #FakeMusic #YouTube #ArtificialIntelligence #IP #IntelectualProperty #GenerativeAi #GeAi #Copyright #Artists #DerechoDeAutor #DroitdAuteur #Music #MusicBusiness #Musica #MusicIndustry #Musique #Musik #MusicBiz #Songs #MusicLicensing #Global #Royalties #MusicRoyalties #DigitalRights #AmazonMusic #AppleMusic, #YouTubeMusic #DOJ #USA #Fraud #Bots

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Our little startup has had some set backs. Copyright is a serious issue and content licensing is expensive. So expensive that the target price for our service is immediately priced out by attempting to meet the demands from the licensing contracts needed to deliver what we've pieced together already. Let's say we did get funding to come to market. Most of those dollars would go to the licensing fees. We'd be working to fulfill the contractual obligation more than to refining our product. Here's even more of a kicker, some of the tech vendors we've talked to will only license existing content. Newly created content for new products are a new contract and additional cost. This is for the tech vendors who will actually talk to us! 10 months ago we saw that agents were the direction and have been building in that direction since. Today this is considered the future expectation that countless agents will be running atop of LLMs and in front of various tooling. I'm not sure how long our effort will continue as we are in gray mode at this point but its the right direction to enable #AI in infrastructure service delivery. We should have gone for the money grab first and worked on the idea second. #startup #ArtificialIntelligence #LLM #Infrastructure #Architecture #copyright #legal

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🚀 A New Frontier of Fan Engagement: Web3 Gaming is Changing the Game ⚔️ Why battle hamsters 🐹 when you could bake muffins? 🍰💥 We officially dropped "Magic Muffins" on Telegram, and it's already bringing the heat. During the soft launch, over 1.3 million gold was spent, and 45,000 ALLY credits were used within the game as part of our ecosystem. It’s safe to say our muffin squad is cooking up something sweet. 👀 What makes these tap-to-earn games so wild to me? It’s not just about gameplay—it’s about community and engagement. A fun, simple way to create connections to the brand and ignite fans. Whether it’s Magic Muffins, Catizen or Hamster Kombat these games turn everyday users into fans through addictive, fun, bite-sized gameplay and rewards. Magic Muffins is already seeing a 60% day-one retention rate, meaning people aren’t just playing—they’re staying for dessert! 🍮 With Telegram’s massive user base, real-time interactions, and blockchain’s fast, low-cost transactions, we’ve got a recipe for viral growth loops and fan loyalty! Web3 games aren’t just about earning anymore—they’re about building fandoms that stick. The new frontier of fan engagement is here. If you’re not baking muffins or tapping hamsters in Web3, you’re missing out on an engagement and UA strategy that’s primed to evolve dramatically. Go play where the people play! 🎮 #Web3Gaming #blockchain #games #FanEngagement #MagicMuffins #CommunityFirst #StayToPlay

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If you saw a doll or figurine in the configuration of a Roblox avatar, where would you think it came from? WowWee Group Ltd partnered with an in-game Roblox designer to create its "My Avastars" line of dolls which copy the blocky designs of Roblox's player avatars. When Roblox learned of the dolls, it sent a notice letter (Roblox had already granted a third party a license to make figurines). But the parties were not able to resolve their differences, and in August 2022 Roblox filed suit, asserting claims for trademark infringement, copyright infringement, trade dress infringement, false advertising and related causes of action. After discovery, WowWee moved for summary judgment. This post focus on the trade dress claim. Roblox defined the trade dress of its avatars as consisting of a combination of nonfunctional elements including: “(1) the humanoid, blocky shape of the avatars; (2) the cylindrical heads of the avatars; (3) the C-shaped hands of the avatars; (4) the block-shaped legs of the avatars; (5) the square or rounded arms of the avatars; (6) the cartoon-like, changeable facial expressions of the avatars and the lack of a nose; and (7) the particularized combination of these elements.” On summary judgment, WowWee argued that the avatars did not have secondary meaning such that consumers would associate them with Roblox. In particular, WowWee pointed out that the claimed trade dress was not used consistently across Roblox's avatars, but the court pointed out that the Ninth Circuit does not require a consistent overall look. Additionally, WowWee argued that the only direct evidence concerning secondary meaning was a consumer survey conducted by its expert. While true, the court found that Roblox had raised an issue of fact as to secondary meaning by relying on indirect evidence such as proof of copying by WowWee based on several WowWee slide decks and a “packaging brief” pertaining to the creation of the My Avastars dolls or describing the dolls and evidence of the popularity of the Roblox platform and that Roblox avatars have been around for many years, such as a WowWee slide deck containing statements about Roblox and its avatars (much of the evidence was under seal, so the court did not describe it in detail). WowWee also argued there was no likelihood of confusion, but again the court found issues of fact. WowWee's argument was based largely on the absence of a confusion survey, but the court pointed out that actual confusion was not necessary, and that the likelihood of confusion analysis is based on a number of factors. The court also concluded that "'Given the open-ended nature of this multi-prong inquiry' summary judgment on likelihood of confusion grounds is 'generally disfavored.'" And so a jury will need to resolve the questions of whether Roblox has protectible trade dress and whether it has been infringed. #IntellectualProperty #IP #tradedress #tradedressinfringement #toys #BusinessLaw #LegalInsights #OffitKurman

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This free 14-page preview—practically a whole issue from those other guys—is still available. Read the preview and plan your purchase of The Big Burn!

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The New York ecosystem for dual-use technology is small but strong and growing rapidly. Thanks to companies like Decisive Point and @a16z who continue to support the community with networking events for founders, investors, and community members. More and more founders are recognizing the value in partnering with the DOD as a strong way to support the country's national security interests while hopefully decreasing the tax burden on citizens regarding government spend as commercially available technology becomes more available and affordable for government organizations. Not only this, but the DOD serves as a great test bed and sandbox for emerging technologies and talent. #dualuse #emergingtech #defensetech #Kilsar

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Blockchain interoperability can not be the responsibility of a single project, it needs to be an industry-wide effort, argues Temujin Louie. https://lnkd.in/gfXQQeVd

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🚀Free NFT update 🚀 Are you really part of the #web3 avant-garde if you don't own at least one podcast NFT? Over on Farcaster, Lens and Zora, far from the web2 brands who still think it's 2022, NFTS are once again about art. Writing, music, film... podcasts. It's experimental, but it's working. Thousands of Podcast NFTs for shows such as UFO, Mint, Coop, Unchained, and Rehash are being minted daily. Is it going to bring down the walls of Spotify? No. Of course it isn't. It's never been a zero sum game; it's not about destroying the gatekeepers and tearing down the ivory towers. NFTs give you a choice. - Ownership - Distribution - Curation - Community If you want to experience how easy the process is, mint the latest episode of Thinking on Paper with Heale CEO Todd Haselhorst right here - https://lnkd.in/eBPrSzVn And you can get the answer to two blockchain solutions with one stone. Mint an NFT podcast, and learn how blockchain technology is revolutionizing logistics to be cheaper, faster, and smarter. #nfts #logistics #podcasts

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🔍 Just discovered an incredible tool for anyone interested in AI and machine learning: The Transformer Explainer by Georgia Tech's Polo Club lab! Ever wondered how language models like GPT actually work under the hood? This interactive visualization tool lets you see a transformer neural network in action - and it's fascinating! Key features: • Input your own text and watch the model process it in real-time • Visualize attention mechanisms showing how the model connects different words • Adjust the "temperature" to see how it affects the model's creativity vs predictability • All running directly in your browser using a lightweight GPT-2 model Kudos to the Georgia Tech team: Aeree Cho, Grace C. King, Alexander Karpekov, Alec Helbling, Jay Wang, Seongmin Lee, Benjamin Hoover and Duen Horng "Polo" Chau for making AI more accessible and understandable. #MachineLearning #AI #Education #DataScience #TransformerModels #TechEducation #GPT

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Blockchain modularity is rapidly gaining momentum as an alternative to the monolithic framework with a more collaborative approach to decentralized tech, argues Felipe Argento. https://lnkd.in/gf9_YWk6

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Dude Perfect raised $100M for global biz expansion. The deal is getting lots of buzz, but our team’s math signals challenges ahead. Let’s break it down… DEAL DETAILS • $100 - 300M growth capital investment • Led by Highmount Capital • Unclear if 100% invested upfront OR draw down of commitment over time • No previous capital raised USE OF FUNDS • Hire mgmt team to expand biz • More live experiences incl int’l tour, consumer products • Grow content formats, frequency, channels, global localization e.g. animation, TV, movies, streaming • Extend brand beyond 5 founders by building talent network • New HQ in Frisco, TX as prod facility and “family-friendly entertainment destination”: – Retail store, podcasts / gaming / fan UGC spaces, trick shot tower, DP museum, mini golf, restaurants – Original plans for 3-story, 30 acre facility est to cost $100M+, 2 yrs to build COMPANY OVERVIEW: Dude Perfect • Digital-native comedy and sports media brand • Faith-based mission: “We’re about giving back, spreading joy and glorifying Jesus Christ”  • Other YouTube franchises: “Stereotypes,” “Overtime”, “Bucket List”  • Media brand also incl books, mobile games, board games and toys, and merch / retail / food and beverage partnerships • 25 current team members PERFORMANCE HIGHLIGHTS • 60M YouTube Followers, 17B views • Est 2024 revenue: $50M per DP • Est 2023 and 2022 revenue: $25M and $20M per WSJ  • Consumer product partnerships incl Nerf toy line, Columbia Sportswear • Partnered with A Parent Media co to launch a streaming service • ESPN “30 for 30” doc premiering at Dallas Int’l film festival • TV series on CMT in 2016, later aired on Nickelodeon • Alternate broadcasts for Amazon’s Thursday Night Football • 4 live nationwide tours as of 2023 ORIGIN STORY • Founded 2009 by 5 friends at Texas A&M • Cofounders = twins Coby Cotton and Cory Cotton, Tyler Toney, Cody Jones, Garrett Hilbert • Started as YT channel featuring trick shot videos INVESTOR OVERVIEW: Highmount Capital • Growth stage and middle mkt PE fund for tech, media, healthcare • Founded in 2023 by jason illian and David Hawkins • 4 team members on website + advisor • 3 team members have faith-based ties per bios • No other investments listed on website other than DP My takeaway... I really like and support the trend of increased investment into YouTubers and digital-native media brands. But as I wrote about in my 2024 State of Creator x Media capital markets reports (will link them below), investment must match market and opportunity size. To ensure good ROI, and to set good precedent for future investment into our space. The DP bet is exciting, but could be overly optimistic based on our prelim math. My colleague Michael Booth's post breaks the math down (link below). More analysis to come in my Friday newsletter. —- I’m the founder of RockWater Industries. We do m&a and strategy advisory for media, agencies, and creator economy. My dm’s are open. #media #agency #creatoreconomy

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🚀 Innovation's Dark Night 🌌 In tech, we often glorify the meteoric success stories. But what about the long, dark night of the innovator—the challenges, doubts, and relentless grind that rarely make headlines? In March 2020, when COVID-19 shut down the trade show industry, it felt like the ground disappeared beneath us. With live events paused indefinitely, my team and I had to act fast. Within two weeks, SURREAL Events was born—a platform to help brands connect with audiences in a photorealistic, immersive way. We had a vision and a lean runway, but no blueprint. It was exhilarating and terrifying all at once. Our first big test came with Riskonnect, a virtual event with high stakes and barely functional tech. After a bumpy launch, our client reminded me: "Failure isn’t an option." Yet, failure seemed inevitable. That was when my good friend and advisor James Ray told me: This is the dark night of the innovator. It’s the space every founder enters on the road to real change. Fast forward to today—Surreal has powered immersive experiences for brands like Epic Games, SEPHORA, Atlanta Braves and Celebrity Cruises. Those early struggles were transformative. They taught me that if you’re not experiencing the dark night, then you’re probably not innovating. Innovation isn’t always glamorous—it’s about resilience, risk, and embracing the unknown. 🌑💡 Once again, thanks to the #AIVideo wizards at Simulus AI for helping share my story 🧙‍♂️ ✨ #InnovationJourney #Resilience #TechStartups #DarkNightOfTheInnovator #SurrealEvents #EmbraceTheUnknown

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One of the most interesting things to come out of of crypto - where the exchange of rewards is so fluid, and fraud is so rampant - is the creation of systems to define which users are real / not bots, and actually generating value. Airlines, hotels, and coffee shops have been in the loyalty business forever... but not with this kind of global reach or velocity. Everyone is already an influencer - but only some are big enough to get marketing contracts. Crypto is showing that anyone can get paid to help build or grow a product. https://lnkd.in/g_wci5tU

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