Creator-Founders: How Social Media is Transforming Entrepreneurship
Welcome to our latest edition of Equity & Entertainment. As we enter the second half of 2024, the evolving landscape of capital markets continues to present unique opportunities for investors and entrepreneurs alike.
In this edition, we delve into the phenomenon of Creator-Founders, exploring how these influencers are reshaping business dynamics, why their approach matters, and how Issuance is the next step in harnessing the power of a captive audience.
What Are ‘Creator-Founders’?
Creator-founders are a new type of entrepreneur who use their dedicated audience to establish successful businesses of their own.
Prominent creator-founders like Marcus Milion, who boasts over 130K followers on Instagram and YouTube, and Good Girl Snacks, with nearly 40K followers and millions of views on Instagram, exemplify the power of high engagement rates.
The high level of follower interaction has been critical in establishing and growing their successful CPG brands.
Typically, these influencers have a following ranging from 10,000 to 500,000, often referred to as "micro” influencers. When it comes to marketing strategies, creator-founders take a different approach compared to traditional companies.
Instead of solely focusing on garnering views - (like many influencers who promote products for other companies) they strive to deliver an experience akin to a reality TV show for their audience.
By shaping content around their personal brand, they captivate and engage their audience with authentic and entertaining narratives. This approach emphasizes not only the product itself, but the journey, making followers an integral part of the story.
Driving Authentic Connection
The magic of these creators lies in their ability to build a strong sense of connection and engagement through a consistent stream of content that is both authentic and entertaining.
This approach includes creating a variety of content-types like vlog posts, short-form videos, and behind-the-scenes footage, which collectively offer a comprehensive view into their lives and areas of expertise.
This content establishes a connection with the brand - unlike the paid promotion many people are used to - and allows followers to be part of the journey and immerse themselves in the stories as the creators build their brands.
Utilizing behind-the-scenes content and continuous engagement, casual viewers turn into invested participants, tightening the connection between the creator and consumer.
Although we can’t take a look behind the curtains and see sales, these online creators are effectively building the most sought-after trait of a successful brand – community.
Why It Matters - A Trend To Follow
While 'creator-founders' may seem like a niche segment, they serve as an intriguing 'incubator model' for the evolving creator economy. These entrepreneurs are developing the next wave of highly engaged brands, often cultivating a near cult-like following.
In a landscape where substantial capital is being deployed, the influence of creator-founders is becoming a trend to follow.
According to The Information, investment flow has returned to creator startups. These startups have already raised as much funding in the first half of this year as they did throughout all of 2023.
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With a remarkable 68% increase in funding compared to last year, and more than double the investment from the first quarter, it's clear that Sand Hill Road, Wall Street, and other major players are betting big on founders with a following.
Although much of this institutional money is directed toward larger brands with millions of followers, every successful business must start somewhere.
The creator-founder approach not only drives investment in the long run but also offers unique potential, bolstered by a strong sense of ownership and loyalty among followers.
Issuance & the ‘Creator Community Round’
In a previous edition of our newsletter, we discussed ‘The Power of the Community Round’, outlining how companies can further engage their community by allowing them to become investors. These “Community Rounds” can turn customers into true brand evangelists who are committed to seeing the companies’ vision become a reality.
Community Rounds offer companies (and Creators!) a competitive edge by incentivizing followers and consumers with equity-based rewards…
And Issuance offers companies a streamlined platform for conducting Community Rounds, allowing founders to harness the power of the crowd - their customers, fans, and followers - to raise growth capital.?
Issuance’s Equity Made Easy Solution
Issuance offers companies conducting Community Rounds a compliant platform to streamline its online capital raise and allow their friends, fans and followers to literally buy into the company.
Across all online capital raises (equity crowdfunding offerings) - Reg CF offerings, Reg A+, or Reg D 506(c) - companies using issuance can gain access to number of crucial benefits:
Today, customers, fans, and followers are seeking to become true owners of the brands and businesses they help build.
This is particularly true for the companies built by their favorite Creator-Founder, where they can take the step from watching the journey form the sidelines, to truly joining the journey by owning a piece of the company.
By offering initial allocations to those who are engaged and active within the community, creator-founders can drive deeper connections by allowing their followers to invest and turn passionate community members into long-term brand evangelists.
In online capital raising, the dedicated communities of Creator Founders are unparalleled in engagement. The Issuance platform excels in managing this dynamic, offering a seamless experience for both companies and their investors.
Connect with us today to learn more about harnessing the power of a following, and how Issuance’s Equity Made Easy solution can help: issuance.com/demo
Capital Raising Online
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