Fast-growing Vydia moving to Holmdel's Bell Works
HOLMDEL - Vydia Inc., a fast-growing technology company that helps internet sensations make money from their videos, has signed a lease to move into Bell Works.
The decision by CEO Roy LaManna gives the former Bell Labs building a coup. He turned down thousands of dollars and a chance to set up shop in Newark so that he could work closer to home.
"What they are doing here is incredible," LaManna said of the building's redevelopment.
Vydia, currently crammed into two temporary offices in Bell Works, has 40 employees and plans to grow to 50 by the time it moves into its permanent space on the second floor. It had $5 million in revenue in 2016, and it expects that to grow to as much as $18 million this year.
It is one of several new tenants moving to Bell Works, the 2-million-square-foot building that is being transformed by Somerset Development. Once used by AT&T's Bell Labs during its monopoly days to do research and development – and win eight Nobel Prizes – the historic building is being turned into one that can house a new generation of cutting-edge companies.
Observers say there is a lot at stake in the project's success. "I think Bell Works is really important on the New Jersey stage and even the national stage," said Brian Smiga, founder of Tedx Navesink and a venture capital investor with Alpha Venture Partners. He is on Vydia's advisory board.
"There’s very few places in the country where venture-backed companies like Vydia can get a long-term, built-out space that’s variable in size and commitment, which is what every hyper-growth company needs," he said.
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New neighbors
Vydia, which will take about 5,000 square feet, was one of five leases announced by Somerset. The others: Two River Technology, an information technology consultant; Adecco USA, a staffing agency; Smith Eibeler LLC, a law firm; and Blue Blaze Financial, financial advisers.
They will join bigger technology companies including iCims and WorkWave, which plan to move to Bell Works this year. For technology firms, the building is a selling point to recruit workers.
Jenna Gaudio of Ocean Grove joined Vydia last year as marketing director after working in Manhattan, where she commuted two hours each way. LaManna invited her to stop by property and see what Vydia was up to.
"He gave me the tour and my mind was blown wide open on what they are doing here," she said. "He was offering a purpose and a passion – and a much easier commute."
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LaManna, 37, lives in Freehold Township. A graduate of Middletown North High School, he dropped out of Brookdale Community College to start his own company, figuring that the qualities that made for a lousy student – chiefly the inability to follow the rules – were desirable for technology entrepreneurs.
He founded Vydia in December 2013 as a way for independent musicians to get paid for online videos that are repeatedly posted by other users. Since then, other creators – from internet celebrities making humorous sketches to a mom who videotapes her 4-year-old daughter cuddling with a cow – have made content. And the content can be shared on several sites – YouTube, Facebook, Instagram and so on.
The hitch: Sharing content without permission amounts to stealing intellectual property. So Vydia developed technology that allows creators to track where their content goes and helps them either block it or collect advertising revenue. Vydia takes 20 percent to 35 percent of the revenue, LaManna said.
The company has 120,000 customers creating content from 150 countries. It recently received $1.15 million in venture capital from a group that included Newark Venture Partners, a fund based in Newark that is trying to build a technology ecosystem there. Vydia could have received another $250,000 if it operated in Newark, LaManna said. But he wanted to be close to home.
"It’s like the jockey, the horse and the course," LaManna said, comparing the decision on who to place your bet on at the track. "I talked to (Somerset President Ralph Zucker) and you can see he’s just a guy who gets things done."
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Three things to know:
1. Vydia was close to moving to Manhattan
"At the time we were having difficulty sourcing talent," LaManna said. "We were talking about moving to New York. That was a very real possibility; we were figuring out how to get there. (Chris Palle, the co-founder of Vi, a co-working space in Bell Works) walked me through this building and showed what it is. He introduced me to (Zucker). We just had a conversation and we were like, we want to be here. I just love this building, which is why we turned down additional funding to be here."
2. Commuting long distances stinks
"I walk (potential employees) around the building and say, 'How would you like to do what you do, but sit in the car a whole lot less and spend time with your family and be able to work at a great company and get a similar work experience that you can find in Manhattan with similar pay?'" LManna said. "You’ll never find someone who says they love their commute. We help them essentially kill that commute."
3. There's a reason Vydia is growing 160 percent a year
"A YouTube celebrity is not (just) a YouTube celebrity anymore," LaManna said. "They’re publishing content on Snapchat. They're publishing content on Instagram. They’re publishing content on Twitter. On Facebook. They put it on YouTube. … It's not about just being on one platform anymore. It’s about being on every platform."
Michael L. Diamond; 732-643-4038; mdiamond@gannettnj.com