What to Make of Venture’s New Appetite for Creator Startups

We are so back (sort of). Funding for U.S. creator economy startups increased for the first time in two years, bucking a continued slump in overall funding for American startups. Investments in these U.S. startups more than doubled in the first three months of the year to nearly $341 million year-over-year, according to The Information’s Creator Economy Database. Compare that to last year’s dismal results, when funding dropped at least 46% each quarter. 

Founders shouldn’t get too excited about the rebound. VCs aren’t whipping out their checkbooks like they were in 2021, when U.S. creator startups raised an average $1.5 billion per quarter. Many have been burned by bets that haven’t panned out. Other startups are still struggling to get to profitability or are seeking buyers.