- Creator economy startups are still chasing investments, despite an economic downturn.
- Insider is highlighting venture capital players funding startups making waves in the industry.
- Here are 13 standout VCs funding creator economy startups in 2022.
The well hasn’t dried up for creator economy startup funding just yet.
While some companies, such as Cameo and Spring, are laying off staff in the face of an economic downturn, venture capital funding in the influencer industry is on track to reach its highest peak this year, according to Crunchbase data.
Funding into VC-backed creator economy startups has already reached $637 million as of July, per Crunchbase (which excludes crypto and NFT startups). Compare that to last year’s funding total — which was $939 million, according to Crunchbase — and prospects aren’t looking too grim.
“We’re not pausing investments at all,” said Saaya Nath, vice president at venture firm Jump Capital. “We’ll continue to look for good deals.”
And part of an economic downturn means those deals may be more favorable for investors, as valuations reset to what is perhaps a more realistic level.
“As much uncertainty as we have, founders have,” Nath said. “I think it’s refreshing to see that founders have started to adjust their expectations on what’s happening in the market.”
That said, VC funding and valuations have been downsized in some areas of the creative economy, such as NFTs, where investors have become more risk averse in the wake of tumbling prices. The Information recently reported quarter-over-quarter funding dropoffs among the companies featured in its creator economy database, which includes NFT and crypto brands like OpenSea and Audius.
And some VC firms with creative economy portfolios like SignalFire have adjusted the types of investments they’re making in order to reduce risk.
“Capital efficiency is more important than ever now because you have fundraising risk,” said SignalFire venture partner Josh Constine.
In an effort to help creator economy founders navigate fundraising in this year’s market, Insider compiled our third annual list of the top venture capital and investment players who are funding startups that are shaping the industry.
From Gen Z VCs with social media audiences of their own to firms investing directly into content creators themselves, Insider narrowed in on 13 standout venture firms.
This list was determined by Insider based on our reporting and the nominations that we received. We considered factors like the success of startups in an investor’s portfolio, and their relative focus and impact on the influencer industry as a whole.
Here are 13 top venture capital firms funding the creator economy in 2022:
Note: VCs are listed in alphabetical order.