If they are to represent the backbone of a future creator tools powerhouse, then Francisco Partners will also need to start integrating some next gen creator tools companies which can act as innovation catalysts for Native and iZotope.
Native and iZotope both make great tools, but fall into the traditional category. New companies like Landr and Output have created tools that focus on great user experiences rather than overloading on features and complexity, the latter of which is the modus operandi of traditional creator tools companies. The new, predominately younger, generation of music consumers expect to be able to make great sounds at the swipe of a finger. Just like Instagram did for photos and TikTok did for videos. In doing so, the creator tools space has merely borrowed from wider consumer culture, where new tools enable the masses to make great content without having to put in the years of hard graft to learn the ropes. Creativity has been accelerated and intensified. Creators can go from one to 100 faster than ever before. This shift is underpinned by a seismic cultural trend: the act of musical creativity has been simultaneously simplified, amplified, and improved. A new generation of empowered independent artists have an unprecedentedly rich (and fast growing) array of self-serve tools and services that enable them to replicate the traditional roles once performed only by record labels, marketing agencies and studios.
The music streaming market has enabled many things, not least the era of the artist. This is one of the first big moves of the new era of creator tools that MIDiA identified last year. Although both companies will operate independently for now, this is the first step of a standard private equity strategy of creating a ‘roll up’ play, with Native the lead acquisition around which a portfolio of creator tools companies will be created. It always looked like it was going to be the start of something big and today we saw the next step on Native’s new journey, with leading audio plugin company iZotope added to the Francisco roster. At the start of the year private equity firm Francisco Partners acquired a majority stake in creator tools stalwart Native Instruments.
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