Source 3

End-to-end mgmt of intellectual property in UGC

645 Deal Team
Aaron Holiday
Industry
Enterprise
Entry Stage
Seed
Status
Acquired
Investment Date
2015
Company Overview

Source3 was the world’s first platform for end-to-end management of intellectual property in user-generated content (UGC). Prior to the exit, they provided IP recognition, licensing and rights administration services to connect creators, marketplaces and brands and enabled monetization of user content across physical and digital products. The team had previously built successful licensing platforms powering digital music, user-generated videos and 3D printing. Source3 offered scalable, turn-key solutions for global licensing challenges.

Investment Rationale

We were originally introduced to Patrick, the founder of Source3, by a friend at Google. When we met with the team, it was clear that the engineering talent was world-class and the CEO was “persuasively intense”: he struck us as the type of person that would run through a wall for his company.

Exit Summary

Facebook acquired the intellectual property technology startup Source3, bringing its rights-management software and engineering team into Facebook to help address content monetization and piracy issues on its platform. The acquisition was strategic because Source3’s technology enhances Facebook’s ability to recognize and analyze copyrighted material in user-generated content—strengthening tools like Facebook’s Rights Manager and giving creators more ways to protect and monetize their work. Post-acquisition, the Source3 team and technology became fully integrated into Facebook’s broader content ecosystem, where they support improved rights enforcement and richer experiences for creators and rights holders on the social network.

In the News

The latest articles on Source 3’s product releases, fundraising, and awards.

Facebook acquires Source3
M&A·Vox
Jul 2017