Crunchbase News reports that venture capitalists (VC) are increasingly backing the creator economy, not by investing in the creators themselves, typically, but rather in the fast-growing industry of services that cater to those creators.
Funding to venture-backed start-ups focused on content creators so far this year has reached $637 million, putting it on pace to surpass last year’s record by far, according to Crunchbase data. Funding to VC-backed creator economy companies in 2021 was $939 million which was double 2020 levels.
Crunchbase News writes that the creator economy encapsulates the industry of people who create online content and make money off of it, independent of a third-party brand. That could mean posting dance videos on TikTok, getting sponsorship deals, reviewing beauty products on YouTube, or writing about current events for paying subscribers on Substack.