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.
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.
Read the full post on VC Cafe, including research from the Information, GWI, Linktree, Antler/Speedinvest and others to get the full picture.
It’s worth mentioning that at Remagine Ventures, the fund I co-founded with my partner Kevin Baxpehler, we remain bullish on the category, but there are nuances that founders operating in this space must know.
Check out my previous posts on the Creator Economy:
- To Succeed In The Creator Economy, Startups Should Address Creators’ Needs
- The Creator Economy is rising, but challenges abound
- Opportunities for startups in the creator economy
- The Creator Economy: Who are they? what do they do? and how do they make money?
- 5 Israeli creator economy startups to watch
- How Link-in-bio became one of the hottest online real estate pieces in the creator economy
