11 VC firms funding the next phase of the creator economy, from AI-powered tools to e-commerce startups
- As the creator-economy hype wanes, some startups are still catching the attention of investors.
- Creator-economy upstarts from WorkWeek to Beehiiv have raised funds in 2024.
- BI is highlighting 11 VC firms that are still captivated by and cutting checks for creator startups.
The creator economy isn’t a shiny new toy anymore.
Like its peers in tech and advertising, startups in the creator industry have had to adapt to changing economic forces, leading to rounds of layoffs, fire sales, and a slowdown in investments. Unicorn startups like Jellysmack have contracted. Others, like BEN Labs, have had to restructure.
But firms like Goldman Sachs are still betting the category will grow into a meaningful part of the marketing industry in just a few years. And things are beginning to look up again for creator startups.
While venture-capital investments in creator upstarts waned for much of 2023, they are rebounding, particularly in the US, The Information reported earlier this year. Startups are raising seed and later-stage rounds from VCs, albeit at smaller scales.
For instance, PunchUp, a comedy startup that helps comedians sell tickets and market live events, closed a $1 million round in November. Other companies, including Beehiiv, WorkWeek, Storiaverse, and ShopMy, have also raised millions of dollars in the past year.
Investors like Daybreak Ventures’ Rex Woodbury are keeping tabs on innovative shopping applications that bridge commerce and content — a category that has been an ongoing testing ground since the rise of the creator economy. Woodbury is excited by “discovery-driven shopping” tools like Flagship, a digital storefront startup.
“Hype is always something to be wary of in venture,” Woodbury told Business Insider. “This is really an industry about being contrarian. When something is out of favor, that’s almost more attractive, right? Because then you can find companies that are under the radar or founders who are exceptional, but maybe not being priced up the wazoo.”
Artificial intelligence remains a focus of many investors in 2024, too. It touches the creator economy as startups develop ways to augment and potentially replace humans in accomplishing some creative tasks. For instance, A* Capital has invested in AI tools for creators over the past year, including EyeTell, founded by YouTube cofounder Chad Hurley.
Creators and creator-founded brands, like Chamberlain Coffee and MrBeast’s Feastables, are also raising capital from VCs. Chamberlain Coffee announced a $7 million round last June featuring investors like Volition Capital, Blazar Capital, and the investment arm of United Talent Agency.
“The big question is … how do you break through the noise?” said Inspired Capital’s Kamran Ali, who led ShopMy’s latest round. He added that Inspired talks closely with brands and creators to hear what products and startups are exciting, which helps guide the firm’s investments.
Business Insider is highlighting 11 VC firms and their partners who are focused on finding the next wave of promising creator-economy startups. This list, our fifth annual, was compiled by BI based on our reporting and the nominations that we received. We looked at each firm’s investments in the past year to understand how they funded new ideas in the creator industry.
Each venture capital firm is listed below, in alphabetical order:
A Star has been investing in AI-powered tools that help creators make content
Investor: Kevin Hartz, cofounder and general partner
A Star Capital, stylized as A* Capital, is a San Francisco-based VC firm that has invested in companies like PayPal, Airbnb, and Pinterest.
Prior to launching the firm, Hartz was a cofounder of Eventbrite and Xoom. When making investments, Hartz said he looks for “exceptional talent” and gets excited by startups that help people monetize their creativity on the internet.
A* primarily leads seed rounds.
Fund size: $315 million, according to the firm
Relevant investments:
- Whop
- Munch
- EyeTell
- Krea
AlleyCorp’s investors are eyeing B2B and B2C marketplace applications
Investor: Susannah Shipton, partner; Marshall Porter, general partner
AlleyCorp is a New York-based firm that has made investments in companies across enterprise software, marketplaces, consumer tech, healthcare, and robotics. Shipton and Porter are the firm’s primary partners leading creator-economy investments.
Shipton works closely with AlleyCorp’s portfolio companies via the firm’s incubation support, which develops ideas and strategies for early-stage startups. She previously was the director of strategy and operations at Artsy, a fine-art marketplace.
Porter leads the firm’s early-stage investments and incubations, focusing on B2B and B2C marketplaces. Before joining AlleyCorp, Marshall was the US CEO of Gympass.
Typically, the firm cuts checks for pre-seed, seed, and Series A rounds.
Fund size: $250 million, according to the firm
Relevant investments:
- ShopMy
- Agentio
Antler looks for ‘maniacs’ and resilient founders
Investor: Jeff Becker, general partner
Becker arrived at early-stage VC firm Antler in 2022 after working as a general partner at Forum Ventures. Before his VC career, he founded an audio-earbud startup, Earhoox, and spent nine years in various roles at LinkedIn.
Becker said he looks for “maniacs” and resilient founders when identifying prospective investees in the creator economy. He talks to 30 to 40 founders a week in screening calls, testing out questions to see how he can learn the most about each entrepreneur.
Fund size: Between $500 million and $1 billion total assets under management across geographies, according to the firm.
Relevant investments:
- Agentio
- PerformVu
- Subbb
Rex Woodbury left Index Ventures to found Daybreak Ventures
Investor: Rex Woodbury, managing partner
A newer firm in the mix, Daybreak Ventures, launched in late 2023 after Woodbury left Index Ventures, where he spearheaded investments in several creator-economy startups, including Creative Juice and Fanbase.
Daybreak invests in internet, software, and AI applications with “potential for viral adoption,” Woodbury said.
The firm cuts checks for pre-seed and seed rounds.
Fund size: $30 million, according to the firm
Relevant investments:
- Flagship
Inspired Capital had 2 portfolio companies get acquired in the past year
Investor: Kamran Ali, principal
Ali joined Inspired Capital in 2020 and previously worked as an investor at Point72. He led influencer-marketing company ShopMy’s recent Series A round and has invested in creator startups like Deeptune, an AI-powered dubbing solution for creators.
Inspired Capital’s team has also invested in creator-economy startups like Creative Juice and Geneva, which were both acquired in the past year.
The firm leads pre-seed, seed, and Series A rounds, with checks between $1 million and $15 million.
Fund size: Recent fund is $330 million and $900 million in assets under management, according to the firm
Relevant investments:
- ShopMy
- Winible
- Creative Juice
- Geneva
Intuition Capital launched in April with a €15 million fund
Investor: Hugo Amsellem and Etienne Boutan, cofounders and general partners
Another new firm, Intuition Capital, launched in April and has its eyes set on disruptive consumer-tech startups. Amsellem previously worked for creator-economy startup Jellysmack and was an angel investor in several companies, including Beehiiv, Creative Juice, and Popchew.
While the firm’s thesis is centered on consumer tech and loneliness, Amsellem told BI he is still looking at creator-economy companies to invest in — just with an “extended definition of creator to anyone making money online and the space as enabling solo entrepreneurship more than creators as entertainers or content-first only.”
Intuition plans to deploy 40 to 50 small checks over the next four years as it invests in early-stage startups.
Fund size: €15 million (about $16 million), according to the firm
Relevant investments:
- Argil AI
LightShed seeks creator startups that make money outside of content
Investor: Jamie Seltzer, general partner
LightShed Ventures focuses on early-stage investments in the media, tech, and telecom spaces. Seltzer, a general partner at the firm, previously worked on early-to-mid-stage media investing at Waverley Capital. Before that, he was a founder and CEO at earbuds maker Alpha Audiotronics and worked in private equity and investment banking.
LightShed looks to invest in startups that are producing high-quality, differentiated content. The firm is interested in companies that have a loyal customer base and can make money outside of content through products or other services (akin to an influencer like Kim Kardashian launching a consumer brand like Skims).
Fund size: $80 million, according to the firm
Relevant investments:
- WorkWeek
MaC Venture Capital continues to invest in startups that help creators get paid
Investor: Marlon Nichols, cofounder and managing general partner
MaC Venture Capital has been on this list for the past three years and has expressed its continued interest in the creator economy. In addition to backing creator-economy companies like Brat TV and FaZe Clan, MaC Venture Capital has invested in emerging social networks like Spill and SWSH.
Nichols looks for startups that focus on transparency and fairness for creators, the firm said. He also seeks out companies that help creators be creative while relinquishing the worry of going unpaid or unrecognized for their work.
MaC focuses on seed-stage investments, per the firm.
Fund size: $203 million Fund II, and $500 million in AUM, according to the firm
Relevant investments:
- Lost iN
- Take Back the Mic
- Spill
Pari Passu Venture Partners works with e-commerce startups that leverage creators
Investor: Julia Gudish Krieger, managing partner; Kyle Widrick, partner; and Dylan Whitman, partner
Pari Passu Venture Partners, or PPVP, is an early-stage VC firm and co-investment network that invests in seed and Series-A stage upstarts. The company has a particular focus on e-commerce in its co-investor cohort. E-commerce has become an increasingly central piece of how creators and platforms make money in 2024.
Managing partner Krieger, who was previously an investor at Insight Partners and founded luxury rental marketplace VillageLuxe, said she looks for founders who are “borderline obsessed in solving a gap they found in the market.”
Partner and investor Widrick, founder and CEO of retail platform Win Brands Group, said he focuses on software that helps creators connect with the brands that they actually care about.
Partner and investor Whitman, who cofounded Shopify merchant memberships platform BVA Commerce with Wildrick, said he looks for startups that reduce friction for brands and offer tools to help them scale campaigns with authenticity.
Fund size: Investment checks have typically been around $750,000 across its 23 investments to date, per the company.
Relevant investments:
- Carro
- Popchew
SignalFire funds startups that help creators be more independent
Investors: Josh Constine, venture partner; Wayne Hu, partner; Ilya Kirnos, partner and CTO
SignalFire is an early-stage VC firm with around $2.1 billion in assets under management, per the company. Constine, its venture partner, focuses on consumer upstarts that work on products for the creator economy and other categories like marketplaces and AI-powered services.
Constine looks for young companies that help creators control how their content is distributed. This includes upstarts that help creators reach fans without relying on unpredictable factors like platform algorithms. He’s also interested in companies that build tools that help creators perform tasks on their own that would normally require a team to accomplish.
Fund size: $900 million, according to the firm.
Relevant investments:
- Karat
- Nim
Volition Capital is betting the creator economy can change how we make money and buy things
Investor: Larry Cheng, managing partner; Jim Ferry, partner; and Carolyn Woll, analyst
Volition Capital invests in growth-stage companies generating between $5 and $50 million in revenue annually. It seeks out companies that are bootstrapped, meaning they haven’t raised funding from institutional investors before.
Volition is interested in how the creator and gig economies have reshaped how individuals make money, changing the ways that products are sold and creators make content. It generally looks for passionate founders who are capital-efficient and seeking out a long-term partner.
Fund size: $675 million, according to the firm
Relevant investments:
- Chamberlain Coffee
- Mozaic