- Business Insider is compiling its fifth annual list.
- We want to hear from you who are the best VCs in 2024.
- Submit your ideas Through this form (or below) by June 18.
The creator economy is a relatively new type of investment built around the rise of social media and the empowerment of individuals as content creators.
Like traditional media companies, creator startups often rely on big tech platforms like Google and Facebook to make money — a precarious position. Throughout the past year, some startups have lost their way, cut costs or shut down entirely. Meanwhile, other startups are still raising capital and growing.
Creator upstarts often operate at lower costs than older media brands, allowing them to test new business models with limited financial risk. New York media studio Fallen Media, for example, built a business on producing MTV-style shows for TikTok’s consumer audience. This reduces production costs and allows us to quickly test different programs and determine whether they will work without much investment.
Creator startups rely heavily on influencers, and their business roots may struggle. But companies in this segment that use creators to monetize another industry, such as e-commerce or consumer products, are often better positioned to succeed. For example, a new wave of upstarts are creating apps that focus on building community rather than influencing events.
„I think of the creator phenomenon as a broad spectrum of different types across different verticals and sectors,” Rex Woodbury, founder and managing partner of VC firm Daybreak, told Business Insider in January. „Venture-level generational companies are, yes, creator companies, but they generally fit into another bucket.”
BI is compiling our fifth annual list. We want to hear from you which VC firms are backing companies that are shaping the growth of the creator industry in the coming months.
Submit your ideas Through this form (or below) by June 18: