What do Mr. Beast, Jake Paul, David Dobrik, and Josh Richards all have in common? Yes, they have millions of fans in their social media accounts. But they’re also investing millions into ambitious, modern startups. And they’re pushing more creators towards venture capitalism with it.
Here’s a quick look at the Rise of Creator VCs.
Creators think bigger
Creators have been diversifying their income streams for some time now. From Lilly “Superwoman” Singh’s Smashbox collaboration to PewdiePie’s own clothing brand “Tsuki”. But today, creators have started thinking bigger.
Mr. Beast recently invested in the fintech company, Current. The companies mission is a digital bank that targets millennial and Gen Z audiences. To launch the MrBeast-Current partnership, the duo launched a hoodie that can only be bought with 5000 reward points on the Current app.
What do you have to do to get the 5000 points? Just sign up to the app with MrBeast’s code and hook your direct deposit to the account. A happy fan? Check. New customer acquired? Check.
Night media, the company that represents MrBeast and ZHC has also allotted $20M to be invested in companies in the gaming, consumer and Creator Economy. All based on the recommendations of their roster of creators. The belief is that creators can streamline their interests into early-stage investing.
In 2021, Paul co-founded the Anti-Fund with serial entrepreneur Geoffrey Woo.
The Anti Fund plans to invest $100k to $1M in one to two start-ups every quarter, ie, around 10 million a year. Paul has also suggested he would like his fans to be involved in the fund so that more people will be rooting for them to win.
Why does the social media star want his fans involved?
Because apart from the inability to raise money, the second biggest problem for start up’s is acquiring users. A social media star-led investment vehicle like the Anti-Fund with direct involvement from the star’s fans takes care of both these problems.
Apart from serving as the CSO for Triller, Josh Richards has also joined Remus Capital as a venture partner.
Having already invested in a few dozen companies, Richards plans to use his network and perspective to sniff out media and tech startups early on. This knack for business has attracted the eyes of notable entrepreneurs, some even becoming mentors. Sean Rad (founder, Tinder), Ashton Kutcher, and Tyler and Cameron Winklevoss all call themselves investment mentors of the 19-year-old.
Richards, Griffin Johnson, and Noah Beck, three of TikTok’s megastars have also come together to launch Animal Capital- a venture capital fund that invests in consumer, health and financial spaces. The three co-founders are an average age of 19 years old. And together, have access to over 100 million fans, aka potential users.
Speaking of TikTok megastars, Charlie Damelio has also gotten into the VC game with a bet on Step, the mobile banking service aimed at teens. Previously, a Step customer, with this investment, the most famous TikToker on the planet is a part-owner of the business as well.
Long story short, creators are evolving. They revolutionized entertainment by becoming individual distribution channels and earned a lot of money by monetizing them. Now, they’re looking to invest all that money into actual businesses. It’s a trend that we think is worth investing in.