THE FUTURE OF FINANCING IN THE CREATOR ECONOMY
The rise of the creator economy and the impact of the pandemic is changing the way creators are valued. The future for creators looks bright as companies are innovating an industry that has historically been undervalued and one that has been taken advantage of. In this article, we talk about three start-ups that are attempting to empower creators through financial solutions
The creator economy refers to the independent businesses and side hustles launched by self-employed individuals who make money off their knowledge, skills, or following.
What used to be a hobby or a pipeline dream for many has now become a way to make serious money. Content creators all around the world are becoming full-time creators and using their skills to make a living. We are seeing the evolution of the rise of the middle class of content creators could be.
That is not to say it will be easy. Historically, creators have been undervalued and taken advantage of in the marketplace. Becoming financially literate will be crucial for the content creators that are looking to make a good living doing what they love.
Listed below are three companies that are creating the financial tools and resources to empower the creative community. We believe these are companies that every creator should get familiar with. .
CREATIVE JUICE
Creative Juice describes itself as a financial network for creators. Simply put, the team at Creative Juice helps the creators know their value. The company is still in its’ early development, but creators have been signing up to be on the waitlist. This is a company that is looking to empower the financial literacy of creators which is something that many creators struggle with.
Creative Juice prioritizes itself on the following:
1) Know your value: Creative Juice clearly breaks down revenue streams across different platforms, calculates historical and future revenues. With a clear picture of their worth, creators can make informed decisions about growing their business.
2) Access capital: The Juice Fund enables investments in passionate, up-and-coming entrepreneurial creators. We’re excited to officially launch our first $2 million funds in partnership with the legendary YouTube creator MrBeast. We’ll also be unveiling additional ways of accessing financing. Sign up to apply to Juice Funds and learn more.
3) Learn from one another: Information is power. And we’re sharing it freely via a knowledge base that defines industry standards and brings price transparency to the market. With access to a community of other creators, leaderboards, rate cards, and guides, creators can make smarter business decisions and charge brands what they’re worth.
The potential that this company brings to the creator economy is very substantial.
KARET
Karet calls itself the Black Card for creators as its attempting to completely change the way of financing. For many creators, it can be difficult to secure a loan from a bank or any sort of lender. Karet is looking to solve those issues by straying away from what banks and lenders traditionally look for.
Instead of a social security number and a credit score, Karet looks at the metric of your social media handles. Listed below are examples.
Instagram - Followers, engagement, sponsorship deals
YouTube - Subscribers, ad share revenue
Twitch -Subs, donations, brand deals
TikTok- Followers, hearts, views
Facebook-Followers, Subscribers, Likes
Twitter - Followers, Mentions, Likes
Additionally, the company has listed on its website that it will not be charging any sort of interest or fees and will provide instant cashback rewards based on social stats.
Currently, the company is backed by former CEOs and Founders that were at Twitter, Twitch, CAA, and YouTube.
Stir is a service that lets creators on new online platforms manage their businesses. It describes itself as a financial studio for collaborating, splitting revenue, money management, and metrics.
The rise of collaboration amongst creators can be largely attributed to the new opportunities that the creator economy offers nowadays. Historically speaking, collaboration amongst creators has always been a way for creators to grow their audience. Before Stir, splitting revenue amongst collaborators was difficult due to the limitations and incentives that platforms offered. Now, Stir has made creator collaboration more accessible which will empower the creator community moving forward.
The company is currently backed by some of the biggest names in the creator and fin-tech economy. Some of the individual investors include Patreon CEO Jack Conte, Youtube co-founder Chad Hurley, Anchor CEO Michael Mignano and YouTube personality Casey Neistat.
Article written by: Giovanni Pugliese