The Information’s Women in Tech, Media and Finance Summit is back October 28-29 in Napa Valley. As AI reshapes business, markets swing wildly, and political instability grows, WTF brings together bold women leading through uncertainty to navigate change and shape what’s next. Reserve your spot.
Hello!
The rebound for U.S. creator economy startups has once again faded.
Funding for these American companies declined 8% to about $678.9 million during the quarter ending in June compared to the same period a year earlier, according to new data from The Information’s Creator Economy Database. Global funding was also down slightly, decreasing 3% to $787.4 million.
The drop follows a jump in investor interest in creator startups over the past year, with funding in prior quarters bouncing back after two years of sharp declines. But these startups haven't seen the same exuberance from investors as in 2021, when VCs made a frenzy of bets. Now, venture capitalists are choosier, generally opting to back a smaller number of creator startups, typically with bigger checks.
Even so, only one startup globally, AI video generating startup Runway, raised more than $100 million during the second quarter, compared to three, nine-figure deals a year ago and four during the first quarter of this year.
Runway also raised the most funding during the second quarter: $308 million in Series D funding led by General Atlantic. That deal made up nearly 40% of the U.S. funding total.
Here are other Q2 highlights:
• AI startups dominated, comprising 10 of the 26 deals we recorded during the period, beating out all other categories. Besides Runway, these included Delphi, which creates AI clones of people and raised $16 million in June, and Linguana, a startup using AI to dub content into different languages, which raised $8.5 million in April.
• Funding for startups outside the U.S. rose nearly 31% to $98.5 million. That was the first year-over-year increase since the first quarter of 2024. The total was boosted by one larger deal: Animaj, a Paris-based AI media company focused on kids and family content, which raised $85 million led by HarbourView Equity Partners.
• At least nine startups were acquired during the period, including influencer marketing firm Captiv8, which was acquired by Publicis Groupe, and independent podcast network Lemonada Media, which was acquired by podcast company PodX Group. Lemonada’s shows include Julia Louis-Dreyfus’ “Wiser Than Me” and Meghan Markle’s “Confessions of a Female Founder.”
Meanwhile, Skybound Entertainment, the Los Angeles studio behind franchises including “The Walking Dead,” acquired creator talent management firm Nine Four Entertainment, another example of how Hollywood and creators are converging. All three of those M&A deals happened in May.
At least two other startups decided to sell off parts of their businesses, so they weren’t included in that deal count.
For example, Fan of a Fan, a creator merchandising company co-founded by YouTuber group Yes Theory, sold three Southern California warehouses to logistics company Selery Fulfillment. And Gushcloud International, a creator management and licensing company, acquired Paris-based Wizdeo’s creator network businesses, which is one of Europe’s largest YouTube multi-channel networks with more than 500 creators bringing in 700 million monthly views.
• Our Creator Economy Database now features 700 companies, up from 50 (!) when we launched it four years ago. These global startups have collectively raised more than $19 billion since 2021, according to our data.
Here’s what else is going on…
Deals & Debuts
See The Information’s Creator Economy Database for an exclusive list of private companies and their investors.
TikTok laid off employees in its global e-commerce business, TikTok Shop, on Wednesday, marking the third round of cuts since April. TikTok also laid off employees on its U.S. trust and safety team on the same day. Read more here.
Netflix has held conversations with Spotify about partnering on projects such as a music awards show or a live concert series, as well as big celebrity interviews and shorter-turnaround documentaries around current news moments, the Wall Street Journal reported.
YouTube announced it will launch a “Creator Incubator,” a new program in partnership with the U.K.’s National Film & TV School to help creators develop technical skills.
The Google-owned company is also recommending the U.K. government appoint a minister for creators, expand access to financing for creators, and publish national guidance regarding filming in public, among other suggestions. The recommendations came as part of a Creator Consultation report YouTube released this week with feedback from almost 10,000 U.K. creators.
Threads is rolling out its own direct messaging feature to users globally, so people don’t have to switch to Instagram DMs. It also launched a new feature that uses a yellow highlighter to emphasize “interesting perspectives and conversions,” such as trending topics.
X is testing a feature that allows AI chatbots to generate Community Notes, its tool that allows users to fact check or provide context to posts.
The NFL is relaunching its annual Top 100 list, which ranks players, as an original series on X. The top 10 finale will still run on the NFL Network on September 1, but the NFL will also share two short-form episodes highlighting two players on the list every weekday throughout the summer, according to the Hollywood Reporter.
Overheard
“For startups, it's really hard to get PR,” Josh Machiz, who advises founders on storytelling at Redpoint Ventures, told Business Insider. “It's even more crucial that they learn how to master their own media.”
That means a growing number of startups, often led by Gen Z founders, are producing slick TikTok-style videos to announce new venture funding rounds, which have a better shot of going viral than a static text post, like a thread on X. It’s also a way to potentially attract new employees or customers.
Hedra’s fundraising video for its recent $32 million round (which was also tallied in our database update above!) also served as a way to show off the startup's digital avatars. Founder Michael Lingelbach himself appeared in different styles, including as a crotcheted doll, a Pixar-like character, and a more jacked version of himself with a Mark Zuckerberg-inspired chain.
People on the Move
RJ Larese joined Curate Capital’s advisory board as a venture partner and head of influential investing. Curate Capital invests in female-founded consumer goods and tech companies. In this role, Larese said he would help creators invest in startups, as well as get involved in other ways, such as by consulting or sitting on advisory boards. Most recently, Larese was vice president of talent and influencer marketing at Paramount.
Thomas Walters is the new chief innovation officer at influencer marketing firm Billion Dollar Boy. Walters co-founded the company in 2014 and previously was the CEO of its Europe business.
Roy Peters was hired as the senior vice president of creator management at The Sociable Society, a creator management agency. Previously, he was executive vice president of talent at influencer marketing agency The Digital Dept.
Allie Fernando is now vice president of marketing at Kajabi after five years as its director of partnerships and community. The Irvine-based company offers software for creators to sell and publish digital content including courses, membership programs, newsletters and podcasts.
Newsletter Moves
Subrina Heyink, a wardrobe stylist, announced she will no longer write her Substack newsletter “Are You Wearing That?” which she launched in 2021. Heynick said she’s not sure what’s next, but said she is “no longer interested in pursuing novelty, which has only led to monotony in my interior and creative life.”
Alicia Kennedy, a food and culture writer, moved her newsletter to Beehiiv from Substack. Kennedy told the Feed Me newsletter that she was paying Substack “a lot of money” due to its 10% cut of subscriptions and that Beehiiv gives her more design options for a new publication she’s planning to launch this fall. (Beehiiv charges a monthly fee to use its software.)
Thank you for reading the Creator Economy Newsletter! I’d love your feedback, ideas and tips: kaya@theinformation.com.
The Information Weekend covers what happens when Silicon Valley logs off—the trends and people shaping culture, technology and everything in between.Subscribe for free today.
Save the date for The Information's next AI summit, AI Agenda Live: The Next Wave. AI Agenda Live will help attendees make sense of what’s coming in the field, from new research breakthroughs to bleeding-edge AI applications.
Reserve your spot for The Information’s WTF 2025 Summit. With AI reshaping business, volatile markets, and rising political uncertainty, the boldest women are coming together to lead through change.
