Influencer accelerator, Farol makes acquisition to advance on TikTok
- November 7, 2022
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The company merged with the Wizz Group, a specialist in short videos, in a cash-and-stock deal
Recently on the market, but close to R$55 million in annual revenue, the content creators accelerator Farol closed the acquisition of influencer marketing agency Wizz Group. With the agreement, Farol now has a casting of 150 influencers and expects to reach 200 in the next semester.
The value of the acquisition was not disclosed, but the deal was made partly in equity and partly in cash. The two founders of Wizz, Felipe Julian and Rodrigo Colzi, join Farol’s society, which includes the two founders Jade Neves and Rudy Micheletti.
“With all of Wizz’s experience, we were able to complement Farol’s idea of achieving this professionalization and helping talents to improve their business, leading to new monetization fronts for these companies”, says Neves, director of strategy at Farol with 15 years of experience in the field. Marketplace. “Today they are very young people, with little professional experience, but with great potential to work as a brand in the influencer marketing advertising market.”
The portfolio has small and medium-sized influencers, from 500,000 to a few million followers, focusing mainly on gastronomy and humor. Farol can make money in the partnership model, with a percentage of closed partnerships, and with proprietary projects, in which they enter as partners with content creators.
“We have an exclusivity model. We work with all the business demands of this influencer, whether arriving through them or departing from one of our negotiations. What differentiates is the percentage of these two fronts. We ended up having a more expressive commercial than the organic one”, explains Neves.
The two businesses complement each other. While Wizz is more focused on producing and capturing this marketing in short videos, with a focus on TikTok, Farol aimed at Instagram. With the expertise of both companies, the expectation is to expand the range of influencers, increasing revenues and partnerships.
“We are already studying some possibilities in collab, product development, creation of streaming content, monetization on other platforms. The idea is to expand to all the content creator’s revenue possibilities. Today, advertising is the main thing, but we intend to accelerate both inside and outside the networks”, says Julian, Farol’s current sales director.
They are two new companies but growing at the same rate of adherence to social networks in Brazil. Wizz was founded in March of last year and Farol arrived on the market a few months later, in September. In the meantime, they have worked with brands such as McDonald’s and iFood, an app that regularly campaigns with influencers.
This year, Farol launched its first proprietary product, Creators na Cozinha, a gastronomic reality show that is sponsored by companies such as Ame, Barilla, Bis and Dr. Oetker. There were 200 entries for four selected that will compete for the final prize, which has the agency of the accelerator.
Source: Value Pipeline