After raising more than $4bn in funding rounds throughout 2021 and 2022, content creator companies find it much harder to get fresh capital these days. Although brands and companies still spend billions of dollars on creator marketing, investors` interest in the companies working in this industry is far from where it used to be.
According to data presented by OnlyAccounts.io, content creator companies have raised $700 million in funding rounds year-to-date, or nearly four times less than last year.
Over the past years, the creator economy has skyrocketed, enabling bloggers, social media influencers, podcasters, TikTokers, and YouTubers to earn from publishing their content. Venture capitalists have been huge financial backers of this booming market, with more and more willing to cash in on startups helping content creators grow and monetize.
But after the funding craze peak last year, which helped content creator startups raise more money than ever, 2023 brought a funding chill with investors pulling back and fearing risks from harsh economic conditions and consumers no longer trusting influencers.
According to Crunchbase data, content creator companies raised $1.3bn in 2021, more than double than a year before. In 2022, a record year for content creators’ funding, this figure more than doubled, with companies raising $2.7bn in funding rounds. Nearly half of that value was raised in Q1, while the remaining quarters saw between $400 million and $700 million of fresh capital. But 2023 brought a downturn, with the funding amounts falling deep below last year’s levels.
In Q1 2023, content creator companies raised only $200 million, or six times less than in the same period last year. Investments have continued dropping ever since, causing Q2 and Q3 to see the lowest funding amounts in years. Statistics show content creator companies raised only $200 million in the past six months, $100 million per quarter, the figures last seen in early 2020.
Despite the recent funding chill, content creator companies have still raised billions of dollars. With $700 million of fresh capital brought to the market this year, the cumulative funding amount rose to over $8.5bn.
More than 60% of the total funding, or around $5.1bn, went to companies from the United States, with California as the leading hub. Asian and European companies follow with $2.1bn and $675 million in total funding, respectively.
The Crunchbase data also showed there are now over 6,600 companies working in the content creators’ space, and one-third are from the United States.