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The Rise Of The Creator Economy As An Investable Asset
In a stunning turn of events, the creator economy has emerged as a maturing industry worthy of serious investment attention. Gone are the days when creators were seen as scrappy side hustlers or chaotic one-person operations filming videos in basements. Today, investors are flocking to this space with private equity firms, investment banks, and capital providers all vying for a piece of the action.
The panel at VidCon’s annual event recently shed light on the shift towards professionalization and its corresponding impact on the market. According to MEP Capital’s Liz Zavoyskiy, the creator economy is now being evaluated alongside any other asset class. “We really look at the creator economy the same way that we’d look at any other asset in the space,” she emphasized.
While misconceptions about low-quality or volatile content still linger, investors are no longer deterred by these concerns. Instead, they’re focused on finding high-quality and sustainable revenue streams. Zavoyskiy explained that decades of data from YouTube’s monetization efforts have created a rich history for analysis, enabling more informed investment decisions.
However, new entrants to the space should exercise caution and avoid getting caught up in hype surrounding M&A activity. RockWater’s Chris Erwin cautioned that the pace of growth and deal-making requires education and strategic guidance. “M&A is considered sexy and exciting, but it’s usually not the best thing to do,” he advised.
In a significant shift, creators themselves are evolving from transactional brand relationships to deeper business building. Slow Ventures’ Billy Parks notes that many agencies now view them as CEOs rather than influencers. This metamorphosis has led to the emergence of new capital providers and financial instruments tailored to their needs.
Ian Shepherd is an investor and host of the Business of Creators podcast.
Source: www.forbes.com
