The numbers: 2021 VC investment in the creator economy already tops that of the previous five years combined. Investment in creator-focused companies totaled about $1.17B between 2016–2020, but has already hit $1.33B just six months into 2021.
What it means: Creators are leading a multi-billion dollar movement, and are harnessing their power by monetizing their skills, influence, and creativity. As a result, investors are betting big on platforms that enable financial success for creators.
Driving change: The creator-led shift is driving a culture that recognizes people for their talent and rewards creativity. As new companies emerge to serve creators, older platforms like Facebook, Twitter, and Instagram have jumped onboard by making it easier for creators to earn money from subscriptions, tips, tickets, and other tools.
The biggest deals: The creator economy is producing more and more unicorns. Here are 2021’s biggest deals so far:
- Online course platform Kajabi raised $550M, reaching a $2B valuation.
- Personalized video shout-out app Cameo raised $100M and hit a $1B valuation.
- Patreon raised $155M, hitting a $4B valuation.
- Clubhouse has raised $300M in 2021, and is valued at $4B.
- “Baby unicorns” include newsletter platform Substack (valued at $650M), photo-editing app VSCO ($550M), and audio-editing platform Splice ($500M).