Are we in a creator economy winter?

The full version of this post was originally published on VC Cafe. This is a short excerpt.

The creator economy was a buzzy term in 2021. VCs poured $5 billion into the category, 15 new creator economy startups were created and the number one desired job for kids was to be a Youtuber, not an Astronaut. Many of the platforms launched ‘creator funds’ to attract and retain top talent on their platform.

The latest creator economy landscape (published in April 2022)

But fast forward to the current market in August 2022, and creator economy companies are facing a tough moment

❌ 60% decline in funding compared to the same period last year

❌ Layoffs across the board

❌ Reduced consumer spend given rising inflation

❌ Most creators can’t make a living or go full time

In my recent post, I look at the pros and cons of the creator economy in today’s market, and what can startups operating in this space do to adjust.

TikTok made more people famous quicker than any other platform before, but it’s getting harder to get to 1 million views.

Read the full post on VC Cafe, including research from the Information, GWI, Linktree, Antler/Speedinvest and others to get the full picture.