Are Creator Startups Ripe For Rollups?

As more creator economy startups find buyers, I’ve been hearing talk about the possibility of rollups: one firm buying several similar businesses and combining them, saving on back-office costs while expanding their markets. So far, there’s more talk than action. 

The private equity firms who typically back such deals have made limited inroads into the creator economy. Generally, that’s due to the lack of profitable companies in the sector and their limited scale. But one area that’s already piqued PE interest is the content produced by creators. Startups with PE backing, such as Electric Monster, Electrify Video Partners and Lunar X are acquiring individual creators’ businesses, typically centered around their YouTube channels, which generate recurring revenue from ad sales.