- Some companies are investing directly in influencers and YouTube stars.
- These deals range from taking a cut of future earnings to buying up YouTube back catalogs.
- Here’s a breakdown of the leading startups financing top creators.
As the creator economy matures, some startups are setting aside capital to invest directly in individual stars and their content.
Take Spotter, for instance, a company that plans to spend a total of $1 billion buying up YouTube back catalogs from creators like MrBeast and Dude Perfect by the end of 2023.
The company purchases the rights to YouTube back catalogs in exchange for 100% of those videos’ advertising revenue. The deals typically last about five years and can be worth anywhere from $15,000 to $30 million.
Venture capital firms are eyeing the potential of deals in this space, as well. Slow Ventures, an early stage VC firm, has added creators to its portfolio of investments.
“No niche is too niche, if you will, and we continue to be surprised by that,” said Megan Lightcap, principal at Slow Ventures. “Even prospective creators I’m talking to, I’m always shocked how big of a business they can build within a seemingly small space.”
One of Slow Ventures’ deals is with YouTuber Marina Mogilko, who runs a language learning channel. Slow Ventures partner Sam Lessin told Insider that the firm would act more like a “passive” partner in Mogilko’s creator business, taking a 5% stake in everything she does as a creator over the next 30 years.
These deals can be appealing to influencers who want to invest in and grow their businesses. For some, the upfront investment lets the creator immediately hire a team. Others have used the money to pay for resources to help expand their production value, like equipment or studio space.
“You’re seeing this explosion of people-first or creator-led brands and a lot of them should be able to access capital in the same way that companies and startups do broadly in the capital market,” Lightcap said.
To help creators better understand who is investing and what those deals look like, Insider compiled a list of six companies investing directly into influencers and their businesses. Insider narrowed down the list based on each company’s presence in the creator economy, investments in creators, and reputation among influencer industry experts.
Here are six leading companies investing capital in creators:
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