11 VC firms financing the next wave of startups based on the creator economy

Like their peers in technology and advertising, startups in the creator industry have had to adapt to changing economic forces, leading to rounds of layoffs, sell-offs and slowing investment. Unicorn startups like Jellysmack have shrunk. Others, such as BEN Labs, had to restructure.

But firms like Goldman Sachs are still betting that the category will become a significant part of the marketing industry in just a few years. And things are starting to look up for creator startups.

While venture capital investment in startup founders has been declining for much of 2023, it is now rebounding, particularly in the U.S., as The Information reported earlier this year. Startups are raising seed and later-stage funding from VCs, albeit on a smaller scale.

For example, PunchUp, a comedy startup that helps comedians sell tickets and promote 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 Rex Woodbury of Daybreak Ventures are tracking innovative shopping apps that combine commerce and content, a category that has been an ongoing testing ground since the rise of the creator economy. Woodbury is excited about “discovery-driven shopping” tools like digital shopping startup Flagship.

“You always have to be careful with hype ventures,” Woodbury told Business Insider. “It’s really a contradictory industry. When something is unpopular, it’s almost more appealing, right? Because then you can find companies that are flying under the radar, or founders who are unique but maybe not priced out the wazoo.”

Artificial intelligence remains on the radar of many investors in 2024 as well. It pertains to the creator economy as startups develop ways to augment and potentially replace humans in some creative tasks. For example, A* Capital has invested in AI tools for creators over the past year, including EyeTell, founded by YouTube co-founder 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 funding round last June, with participation from investors like Volition Capital, Blazar Capital and the investment arm of United Talent Agency.

“The big question is… how do we cut through the noise?” said Kamran Ali of Inspired Capital, which led ShopMy’s latest round. He added that Inspired talks closely with brands and creators to find out which products and startups are exciting, which helps guide the firm’s investments.

Business Insider recognizes 11 VC firms and their partners focused on finding the next wave of promising startups in the creator space. This list, our fifth annual, was compiled by BI based on our reporting and nominations we received. We looked at each firm’s investments over the past year to understand how they funded new ideas in the creator space.

Below is a list of all venture capital firms, sorted in alphabetical order: