How Investable Is The Creator Economy In 2024 & Beyond?

Tanmay Bhat. Dr Mike. Joe Rogan. MostlySane. BeerBiceps. They're what's being called "creators". And over time, mostly since the COVID-19 pandemic, there's been a rise of an economic system featuring independent creators connected to businesses and audiences through the internet. This is being dubbed "the creator economy". And it has about 160 million amateur content creators.

So, how does that work? The audience supports the creator financially by engaging with their content, purchasing their merchandise, buying from brands the creator is associated with or, just simply, making the creator a thought leader. It's not just singing or dancing or telling jokes. Creators can also have newsletters, podcasts, informative videos and more. It seems like a new force shaking the status quo. It's getting so cool that a lot of young people may prefer being a creator to an astronaut.

The creator economy is expected to grow from about $128 billion in 2023 to close to $530 billion by 2030 at a CAGR of about 23%. So, if it has potential, it could be a new frontier for the VC community, who aim to have their finger on the pulse of innovation.

Traditional businesses may require heavier capital investment in physical assets. But, maybe for creators, the upfront costs could be minimal. Creator economy startups, on the other hand, may be facing their own issues. According to one TOI report, about 6 startups that have raised more than $12 million in funding have shuttered operations, while others have pivoted or been acquired. This has been attributed to these startups focusing on administrative issues instead of focusing on the real problems that may plague creators.

So, is this a compelling investment thesis for VCs to back platforms that unlock value for creators and the entire digital ecosystem?

Read here to find out more: https://rizingtv.com/how-investable-is-the-creator-economy-in-2024/

And are you ready for Rizing Startup Ideas?

How about a startup idea to help preserve memories and relationships by creating an AI based on a person and trained on their thoughts and ideas? That could be a personalized chatbot using their avatar. Let's say you were close to your late grandfather and before he passed away, the AI was trained on his ideas, perspectives and mindset. After he, unfortunately, expires, you could interact with a virtual version of your loved one via the chatbot, which would analyze and understand their thoughts, ideas and memories of a person. This could capture their unique personality and wisdom. So, you could interact with them, ask questions and seek advice, just as you would with your loved one, helping you seek solace, gain perspective and feel connected to your loved ones, even after they have passed. Revenue could come from subscriptions and partnerships with grief counselling services or mental health organizations.

So, what do you think of this idea? Is the startup viable and scalable? What are the flaws in the idea? Let us know.