Hello, content creators. Silicon Valley investors want to meet you.

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Hello, content creators. Silicon Valley investors want to meet you.

Last summer, 28-year-old Tucker Schreiber, founder of a startup combo that was building a video editing platform, saw a lot of emails in his inbox. Although his company had no employees and no products, and did not even say he was looking for money, investors were sending him a series of messages.

“I started receiving five to 10 inbound emails a day from investors for a few weeks,” he said.

Mr. Schreiber’s beginnings were at the height of so-called creative or influential investors targeting the economy. The boom in the self-created economy has revived interest in social media among venture capitalists, who for years thought there was no point in looking for social ads like Facebook and Snap (which is owned by SnapChat). .

Creators are people who build an online audience and find a way to make money from that audience. They are usually young, digital locals trying to make a living from their social media work. And big Silicon Valley investors see it as the next financial vein to tap into the Internet.

Creative Economy, which provides digital tools to impressors and helps them run their businesses, is a huge, largely undiscovered market. Venture capital firm Signalfire estimates that 50 million people worldwide consider themselves content creators, while technology news site The Information estimates that so far this year, venture capital firms have raised ارب 2 billion in startups based on 50 creators. Invested dollars.

The growing interest of traditional project investors can be justified by what some may still think is a small business. It may also add to the idea that this growing world of dance, chat and comedy is more than just a young culture of minorities.

But as the saying goes, don’t invest in gold miners – sell their tools. Silicon Valley is more interested in the digital tools and platforms used by content creators than in direct investment in self-creators.

Last month, for example, the venture firm Founders Fund took the lead in a دور 15 million investment period for Petra, which aims to help launch inspiring product lines. In April, Seven Seven Six, a venture firm managed by Reddit co-founder Alexis Ohian, and Besmer Venture Partners announced a 16 million investment in PeerPup, a platform that creates Cars help them make money with their support and social media conversations.

The list goes on. In February, high-profile venture firm Anderson Harwitz led an investment in Easter, a platform that helps creators manage how they make money, with the company valued at $ 100 million. ۔

Depot, a photo-sharing app that mimics the digital camera experience, received an additional investment round of $ 4 million in a funding round led by Seven Six and a ڈالر 20 million investment led by Spark Capital. Venture Stuart Benchmark reports an investment in Poprazi worth 20 20 million, an app that allows users’ friends to post photos on their profiles and effectively Turns into “paparazzi”.

And then there’s the clubhouse, the heavyweight of this young market, resonating heavily with Silicon Valley and the media and entertainment world. Clubhouse, which requires an invitation to join, is a social network built around audio-only chat rooms. In April, it raised 200 200 million in a fundraising round led by Anderson Horowitz, valued at 4 4 billion.

“When I first started at Venture Capital in 2016, it was widely believed that” another big one, “said Lee Jin, founder of Atelier, a venture firm focused on the world of online creators. It will be really difficult to come up with a social network.

Tick ​​tock ended it all. Focusing on inspiring people, the app forced changes from traditional social networks such as Instagram and Twitter that were cut off from feeding people who were creating popular content on their platforms.

TickTock allowed incoming social media personalities to be discovered more easily, and provided them with a clear way to make money through the company’s Career Fund, which pays creators a certain amount based on ideas.

“Old social platforms, they were all about chatting online with your friends,” said Lance Walton, vice president of Chernan Group, an investment firm. Now “it’s all about becoming an influence, or becoming a new tick tick star that all your friends are watching.”

Not only did subscription services like Fans and Patriots, where fans paid creators access to premium content, also helped investors realize that creating equipment for creators is a strong business venture. Now the word “creator” has become a force to be reckoned with, which is involved in all kinds of businesses to attract investors. That’s all Find Alexander, A tech entrepreneur, coined the term “creative wash”.

Turner Novak, founder of Banana Capital, which initially invests in tech startups, said, “More creative than creative is the beginning of an economy.” Joked on Twitter In April.

Rex Woodbury, the 27-year-old principal of San Francisco-based investment firm Index Ventures, represents both worlds. It started out as an influence, publishing lifestyle content and building an audience of over 237,000 followers on Instagram. After graduating from college, he spent full time in investing, where he has established himself as an authority in the Creator’s economy.

Mr Woodbury said: “I’ve seen some posts from VCs saying, ‘Out of the 10 companies I met today, eight are creative companies.’ “It’s really popular now.”

He joined Index Ventures in December, as venture capitalists began to take an interest in creators and seek help from people who understand landscaping.

“A lot of young investors feel confident because we’re digital natives,” said Mr Woodbury. “This is the world we grew up in.”

Now, big platforms like Spotify, Twitter and Facebook are running fast to catch up with startups, especially clubhouses. Spotify recently announced its new live audio app, Green Room, a competition from a clubhouse that built Spotify after acquiring a live audio startup locker room. Twitter has already added its clubhouse competitor, Twitterspace, and is launching both Twitter and Facebook newsletter services to counter the success of the substack, allowing users to easily submit their posts. Can configure subscriptions.

With the blurring of the world between venture capital and the creator’s world, many traditional venture capitalists also want to become creators themselves. Firms like Anderson Harvottz have taken advantage of their investment in Clubhouse to promote their staff through the app’s suggested user list. Knight Jones, a colleague of Anderson Harwots, has garnered more than four million followers at the clubhouse and recently signed with the talent agency WME.

Still, as investors rush to invest in social media startups, it’s less clear whether some of the apps on the market will last. Dispo, one of February’s most prosperous social media startups, is embroiled in a controversy over allegations of sexual harassment against one of its co-founders, YouTube star David Dobrek, a member of his “Vlog Squad”. Faced with severe criticism. Shortly afterwards, Spark Capital announced that it had severed all ties with the company. Seven Six did not sever ties, but said it would benefit any organization working with survivors of the attack.

According to app research firm Sensor Tower, Poprazi, which topped the list of free iPhone apps in the last week of May, was ranked 156th by mid-June. And while Sensor Tower figures show that Clubhouse had 5.3 million downloads in the first two weeks of June, 4.8 million of its Android apps were launched in late May.

“For years, no one cared or identified a place with real money,” said Bobby Thackeray, 21, co-founder of Empressand, a product studio that makes tools for creators. With money flowing in, we’re only going to see more companies, more competition and more startups to add creators as part of their business. “

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