What's next for creator-focused startups now that the venture boom is over?

Oct 5, 2022

The hosts dive into the evolving landscape of creator-focused startups, exploring how the recent downturn in venture capital is reshaping the ecosystem. They discuss the challenges creators face, including declining ad revenues and market saturation. Insights into how different creators adapt to economic shifts reveal a stark contrast in opportunities for larger influencers versus smaller ones. The conversation highlights the need for diverse income streams and strong creator-fan relationships to thrive in this quirky new economy.

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INSIGHT

Oversaturation in the Creator Economy

Creator economy startups are experiencing a natural correction due to oversaturation.
Savvy creators were already skeptical of these startups' promises.

INSIGHT

Challenges in the Creator Economy

The creator economy faces a decline in ad revenue and venture capital.
Individual consumer spending is crucial for a healthy creator business.

ADVICE

Diversifying Creator Income

Diversify income streams with ads, memberships, brand deals, and merchandise.
Consumer spending habits directly impact creator revenue, especially during economic downturns.

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Hello and welcome back to Equity, a podcast about the business of startups, where we unpack the numbers and nuance behind the headlines.

This is our Wednesday show, where we niche down to a single topic, think about a question and unpack the rest. This week, Alex asked: How are platforms responding to the new creator landscape? (Don't worry, the Wednesday show is still Natasha's to lead, she was just a little under the weather this week!)

Happily, Alex was not running solo, as TechCrunch's own Amanda Silberling was with the show this week -- not for the first time! -- to chat through the key questions we wanted to parse our way through:

What is the new creator landscape?
How did we get to today from the go-go 2020/2021 period of creator-focused venture deals?
What are creator-focused platforms focused on today?
And, finally, what options do creators have today, based on our understanding of the market?

The idea for the episode stems in part from our reporting, including this recent look at the amount of money that creator-targeting startups have raised in recent quarters. (Also in the news? Substack, Patreon, and others!)

Before we say goodbye and come back on Friday, two quick notes from the team:

You can use the code “EQUITY” for a special listener discount for Disrupt tickets. We’re just weeks away!
And we also have a special for those impacted by layoffs. If you were laid off, go here to get a free ticket to TechCrunch Disrupt’s Expo.

See you there, and chat you Friday!

Equity drops every Monday at 7 a.m. PT and Wednesday and Friday at 6 a.m. PT, so subscribe to us on Apple Podcasts, Overcast, Spotifyand all the casts. TechCrunch also has a great show on crypto, a show that interviews founders, a show that details how our stories come together and more!

Credits: Equity is produced by Theresa Loconsolo with editing by Kell. Bryce Durbin is our Illustrator. We'd also like to thank the audience development team and Henry Pickavet, who manages TechCrunch audio products.

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