Call for Nominations: Recognizing the Leading Investors in the Creator Economy for 2024

Rising Tide of Creator Startups: How Big Tech is Empowering Content Makers as Entrepreneurs

The creator economy is a new investment category that has emerged in recent years due to the popularity of social media and the empowerment of individuals as content creators. These creator startups often rely on Big Tech platforms like Google and Facebook to generate revenue, which can be a risky position to be in. While some startups have struggled and either cut costs or shut down entirely over the past year, others continue to raise capital and grow.

One advantage that creator startups have over traditional media brands is that they operate with lower costs, allowing them to experiment with new business models without taking on too much financial risk. For example, Fallen Media, a New York media studio, focuses on producing shows for the TikTok audience with low production costs, enabling them to test different shows quickly without a significant investment.

While some creator startups may struggle if they rely too heavily on influencers, others that use creators to drive revenue in e-commerce or consumer goods industries are better positioned for success. There is also a new wave of startups that are developing apps focused on community-building rather than just the influencer trend. According to Rex Woodbury, founder of Daybreak VC firm, the creator phenomenon is broad and spans various sectors.

Business Insider is compiling a list of venture-capital firms that are investing in the creator economy. They are seeking input on which VC firms are supporting the growth of companies in this industry. Ideas can be submitted through a form on their website by June 18.

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