Children’s entertainment company Moonbug Entertainment has raised $145 million in funding to acquire and broadly distribute children’s programming.

The funding round, which is led by The Raine Group, follows the young company’s first acquisition, Little Baby Bum. The YouTube channel created by a husband and wife in the U.K. has amassed 17 million followers with its collection of 3D animated videos of traditional nursery rhymes and original compositions for toddlers.

“There are so many brilliant creators around the world developing quality content that children love,” said Moonbug co-founder and CEO René Rechtman. “There is so much potential to develop these franchises further.”

Rechtman, who most recently head of non-linear media networks at the Walt Disney Co., and Moonbug co-founder John Robson, who held executive roles at HTC and Paramount Pictures, plan to build a portfolio of kid-focused media properties that help children develop life skills.

This ambition to build the next generation of kids’ content won the support of a group of backers, who include Felix Capital, Fertitta Capital and others. Raine, a New York merchant bank focused on media, technology and telecommunications, invested $100 million, according to the Wall Street Journal.

“As the children’s content market evolves and viewing habits move to digital platforms, Moonbug is well-positioned to address this increasingly global opportunity,” said Jason Schretter, partner and head of Europe, Middle East and Africa at Raine.