Архив метки: Alex Wilhelm

What to expect from the creator economy in 2023

Social media platforms and creator-focused startups haven’t looked too hot this year, as companies like Snapchat, Patreon, Cameo and Meta all waged layoffs along with the rest of the tech industry. YouTube ad revenue is declining, and creator funds for platforms like Pinterest have dried up.
It might seem like things are bad on the surface, but the creator economy is more than just a buzzword that’s losing interest among venture capitalists. Despite challenges on a platform level, creators are continuing to make a living outside of the bounds of traditional media and will only continue to grow in 2023.
Social media platforms will need to commit to creators (seriously, this time)
In my opinion, the biggest creator news in 2022 was YouTube’s announcement that it would include Shorts creators in the YouTube Partner Program, allowing shortform creators to earn ad revenue for the first time ever. Starting in early 2023, creators will be able to apply to the YouTube Partner Program if they meet a new Shorts-specific threshold of 1,000 subscribers and 10 million Shorts views over 90 days. As members of the Partner Program, these creators will earn 45% of ad revenue from their videos.
This is huge, because it’s an open secret that shortform video is hard to monetize. For example, TikTok pays creators through its Creator Fund, a pool of $200 million unveiled in summer 2020. At the time, TikTok said it planned to expand that pool to $1 billion in the U.S. over the next three years, and double that internationally. That might sound like a lot of money, but by comparison, YouTube paid creators over $30 billion in ad revenue over the last three years. As the pool of eligible creators becomes more saturated, creator funds are pretty useless — if you’re in TikTok’s creator program and have a video get 1 million views, you might be able to cash out for a small latte. So while these multi-million (or billion) dollar creator funds might seem like a beacon for creators, they don’t help too much. Most popular TikTokers make their money from sponsorships and off-platform opportunities, rather than from their videos.
TikTok has long been the dominant platform in short form video, while Snapchat, Instagram and YouTube largely copied the newcomer to keep up. But creators will finally be incentivized to flock to YouTube Shorts once they can actually earn ad money there. The best part? There has never been more pressure on TikTok to follow suit.

YouTube Shorts could steal TikTok’s thunder with a better deal for creators

‘Creator Economy’ isn’t a buzzword
What’s a buzzword? You know it when you see it. It’s when Facebook rebrands to Meta and you suddenly get hundreds of emails about “the metaverse,” or when a crypto startup declares its commitment to fostering “community” just because it has a semi-active Discord server. You could also classify “creator economy” as a buzzword — I personally find myself cringe whenever I say it out loud, but I stand by the fact that it’s a much easier shorthand than saying “the industry in which talented people on the internet are leveraging social media audiences to develop careers as independent creatives.”
But all of these buzzwords actually represent real things. Yes, even the metaverse is a thing, though I’d argue we’re talking more about Club Penguin than whatever Mark Zuckerberg is into. The problem with buzzwords, though, is that they dilute real phenomena into fads that get further muddled by disconnected venture capitalists doubling down on the trend with over-enthusiastic investments.
On TechCrunch’s own Equity podcast last week, everyone’s favorite tweeter and brand new dad (!!) Alex Wilhelm reflected on a prediction he made last year.
“The passion economy isn’t sustainable,” he read, quoting his prediction from last year. “Nailed it! Who talks about creators these day? Nobody!”
I can forgive Alex because I do hate “passion economy” with the fire of an exploding supernova for each and every follower Khaby Lame has on TikTok. The term glorifies the relentless, soul-crushing hustle that people face while trying to “make it” in a field they love, while ignoring that industries that people pursue out of passion (art, non-profit work, politics) are often the most exploitative of all.
I think what Alex is getting at here, though, is that in 2021, venture capitalists poured money into the creator economy in the same way they pursued “trendy” tech like AI and web3. According to data retrieved from Crunchbase earlier this year, here’s the breakdown of creator economy funding for the first three quarters of 2022.
Q1: 58 rounds worth $343.2 million.
Q2: 42 rounds worth $336.0 million.
Q3: 19 rounds worth $110.2 million.
I don’t think this means that the creator economy is failing, though. It could just mean that the industry is correcting for over-investing in a bunch of creator-focused companies that creators didn’t actually want or need. Also, you know, the economy.
I’ve been saying for the entire past year that creator economy startups can only succeed if their foremost goal is truly to help creators. In 2021, a year when venture capital flowed like champagne at a Gatsby party, we joked that there were more creator economy startups than creators. But that’s a problem for investors, not creators, many of whom operate completely oblivious to the whims of a16z. It’s indicative of an environment that incentivizes tech moguls with no hands-on experience to try to solve problems of an industry that they don’t quite understand, and as a result, the space became deeply oversaturated. I cannot keep track of the number of companies I’ve encountered that attempt to automate the process of securing brand deals or help creators make white label products.
I’d go as far as to say that it’s bad for creators when there are too many startups angling for their partnership. We know that most startups are doomed to fail — what happens if you rely on a company to offer your business some sort of service, and then they fail within a few years? This is why I’ve made it a personal policy of mine to always ask creator-focused startup founders how they would plan to protect their creators from harm if their company fails.
No matter where the VC funds may fall in 2023, the playbook for creators’ success remains the same. Diversify your income streams, build trust with your audience, and make sure you don’t burn yourself out.

Yeah, funding for creator-focused startups is drying up

Venture capital will continue to intersect with creators, but not in the way you think
Investments into creator economy companies might be down, but creators are continuing to interface with VC money in a way that their audiences don’t often see. Charli D’Amelio and her family have become investors themselves. MrBeast is seeking funding at a unicorn-sized valuation, which isn’t surprising given that other especially successful creators have accomplished the same.
In less extreme cases, many creators are growing their businesses through startups like Creative Juice, Spotter and Jellysmack, which offer up-front cash in exchange for temporary ownership over a creator’s YouTube back catalog, which means the company gets all of the ad revenue from those videos. These companies operate similarly to venture capital firms. They invest in creators that they believe will turn that cash infusion into even more money, giving both parties a return.
Despite securing massive funding rounds and mammoth valuations, the model that these companies operate is still relatively new, and creators should exercise caution, as they should with any business deal.

Is MrBeast actually worth $1.5 billion?

What to expect from the creator economy in 2023 by Amanda Silberling originally published on TechCrunch
What to expect from the creator economy in 2023

Here are the best books that TechCrunch read this year

While the TechCrunch crew enjoys a tweet and a post from time to time, we also enjoy reading longer-form materials. So much so that we are compiling a year-end revue of our favorite reads.
This is not just a list of serious business books or just fiction that was published this year.
Instead, we have put together a list of just our favorite stuff that we read this year. Some of it won’t surprise; I hope that some of it does — but given how literate the average TechCrunch reader is, perhaps I will be contentedly disappointed.
The following list is in no particular order. And while we may earn a dollar or two off of commissions if you buy one of the books below, we’re not doing this for the money. We just love books, and reading, and want to share some of our joy with you. (TechCrunch also has lists of recommendations from founders and venture investors coming later this month!)
Hugs, happy holidays and may your 2023 reading crop be fruitful.
This article contains links to affiliate partners where available. When you buy through these links, TechCrunch may earn an affiliate commission.
The best books TechCrunch read in 2022
Each recommender’s books are grouped, links go to Amazon. Summaries are via the TechCruncher in question, at times lightly edited for clarity and format.
Rebecca Szkutak:
The Secret Life of Groceries: A super fun and interesting book about the history of grocery stores and what their supply chain looks like today. Yes, I’m a jumbo nerd.
Crying in H Mart: A lovely memoir that made me cry in the Goa airport.
Harri Weber:
Writing Down the Bones
You Are Here
From Harri: “Both my picks are rereads that gently address existential spirals with reassurance, through self love in the case of ‘You Are Here’, and through writing in the case of ‘Writing Down the Bones.’”
Ram Iyer:
Anno Dracula: It’s 1888 and Dracula has won the fight against Van Helsing & Co., married Queen Victoria and turned a lot of London into vampires. And Jack the Ripper is a human who’s cutting up young vampire girls. A grim and stark whodunit featuring a variety of characters from popular fiction, as well as real historical figures of the time.
Neesha Tambe:
Little Gods: Love seeing culture dynamics represented through fresh lenses. Educated immigrant experiences in the U.S. are often not written about. The chapters weave between timelines and characters, making picking up the book absolutely addictive.
Atomic Habits: Okay, okay. I know it’s old and basic, but I needed to establish better physical and mental habits coming out of the deep pandemic. Recognizing that making 1% changes regularly can lead to big dividends made making daily decisions in line with long-term goals easier.
Untamed: An absolute must read, especially for people who have felt the constraints of society. An autobiographical collection of stories, the author breaks down toxic standards and encourages readers to identify and pursue their own true vision for happiness.
The Prince: In an era where people believe that principles should be policy, this is a good reminder of the political *science* involved in governance and learning from past mistakes.
Dominic Madori Davis:
The Color of Law: An interesting look into how the federal government indirectly helped and upheld illegal housing discrimination in the U.S., and the impact that has had on the Black community in terms of wealth building, access to educational and city resources, and the stereotypes still associated with many Black neighborhoods today.
Token Black Girl: An honest memoir from a former Black fashion editor as she grappled with her childhood and eventual working life trying to assimilate into, and find acceptance in, rich, white environments. She talks about the psychological toll this took on her, the mental journey she is still on in unlearning self-hatred and how she is finally coming to terms with loving her natural Black self.
Natasha Lomas:
Super-Infinite: The Transformations of John Donne: The metaphysical poet’s life engagingly deconstructed.
Amanda Silberling:
Tomorrow, and Tomorrow, and Tomorrow: I feel like this is one of those perfectly constructed novels that will be studied in weird (appreciative) liberal arts school fiction classes in 50 years (or, like, 50 days). It’s hard to pull off the kind of story that follows characters from the time they’re small children to fully formed adults, but it’s a joy (and, at times, agonizing) to watch these two friends grow from awkward artistic teens to niche-famous game developers who use their craft to navigate murky questions about how and why we make art and how it affects people. Even if you’re not a video game person, there’s a lot to love in this book, so long as you care about … uh … art and people.
True Biz: I am always annoyed when people think you can only learn about things by reading nonfiction — case in point, “True Biz” taught me so much about Deaf culture, disability and the ever-present threat of eugenicist science. I love when fiction can help me empathize with people different from me, yet this book is more than that. It’s just an amazing story in itself, alternating among the points-of-view of various characters from different perspectives in the Deaf community: angsty teens fighting for their right to Deaf education, a teacher navigating her rocky marriage, a hearing parent of a Deaf child who must come to terms with her prejudices. This was the kind of book that I was sad to finish, because I wanted to spend more time with the characters who I so quickly grew to root for and love.
Devin Coldewey:
Ministry for the Future: Near-future fiction extrapolated directly from the present can be very weak, but Robinson is both unflinching and imaginative of what a climate crisis would look like, how it might play out and what kind of bonkers moonshots might be necessary for us to continue to live on Earth.
Romain Dillet:
Abolish Silicon Valley: This book is an honest and engaging first-person story that showcases the hubris of Silicon Valley’s corporate culture. Wendy Liu depicts situations that are sometimes so absurd that she will make you laugh. She also takes a step back and looks at the political implications of startup culture and Silicon Valley.
Anna Heim:
A Very British Christmas
Four Thousand Weeks: Time Management for Mortals
How to Be Good
Anna did not provide commentary on her picks, so I have decided that the way to Be Good is to spend Four Thousand Weeks each year having a Very British Christmas.
Alex Wilhelm:
The Golden Enclaves: Third book in a breakout fantasy series with one of the best protagonists I have ever had the pleasure of getting to know and cheering on. I am going to reread the whole series again, I think, this holiday period.
The Priory of the Orange Tree: You know how they say that you shouldn’t judge a book by its cover? I bought this beast strictly by dent of its heft. More or less it was a hugely chunky paperback, and I thought, well, I like fantasy, and this book must be good to get published at this length, right? Turns out I was right! Huge, interesting, good and with characters I adored by the end. And dragons.
Here are the best books that TechCrunch read this year by Alex Wilhelm originally published on TechCrunch
Here are the best books that TechCrunch read this year

Meta lays off thousands, FTX collapses, and Twitter has a very weird week

Hey, friends! Welcome back to Week in Review, the newsletter where we recap the top TechCrunch headlines from the past seven days. Get it in your inbox every Saturday AM by signing up here.
Ready? Let’s go.
most read
Twitter had a week so strange that it could easily make up this entire newsletter, so we’ll keep to the bullet points:
Last week Elon laid off a huge chunk of the company. This week, some of those who were let go were reportedly asked to come back.
Twitter started giving blue verified checkmarks to anyone who’d pay $8. Things got chaotic fast.
Twitter rolled out a new, second checkmark for “Official” accounts. And then got rid of them. And then…brought them back?
By Friday morning, after fake “verified” accounts popped up for everything from companies to athletes to politicians, Twitter paused the $8 verification badge program.
A number of execs quit — to the point where the exits perked the ears of the FTC.
Elon reportedly told Twitter employees that “bankruptcy isn’t out of the question” for the company.
FTX collapses: Once one of the biggest crypto exchanges in the world, FTX effectively exploded this week. It briefly looked like competitor Binance would step in to acquire FTX, only for Binance to take one look at FTX’s books and back out almost immediately. FTX founder Sam Bankman-Fried has since resigned, and the company has filed for bankruptcy.
Meta layoffs: Meta — the parent company behind Facebook, Instagram, and Whatsapp — laid off 13% of its workforce this week. With a worldwide headcount of around 87,000 employees, that works out to over eleven thousand roles cut.
Gmail will no longer let you go back to old Gmail: Don’t like the new look that Gmail started rolling out back in July? Bad news. While users could previously revert to the old design, the Gmail team announced this week that the new design will be the “standard experience” for all within weeks.
Google finds exploits in Samsung phones: “Google says it has evidence that a commercial surveillance vendor was exploiting three zero-day security vulnerabilities found in newer Samsung smartphones,” writes Zack Whittaker. “The chained vulnerabilities allow an attacker to gain kernel read and write privileges as the root user, and ultimately expose a device’s data.”
audio roundup
Looking for a new podcast to tune into on your commute? Here’s what’s up in TC podcasts lately:
The Chain Reaction crew broke down the absurd collapse of FTX as it was happening.
Equity (with a guest appearance from TC’s Becca Szkutak) covered the seemingly endless layoffs we’re seeing from tech companies big and small, and what FTX’s meltdown means for it and companies like it.
Darrell was joined on The TechCrunch Podcast by TC senior reporter Dom-Madori Davis to talk about “the coalition of VCs that are standing for reproductive rights” and to recap the biggest tech stories of the week.
TechCrunch+
Not a TechCrunch+ member yet? Here’s what members were checking out most behind the paywall:
How ButcherBox bootstrapped to $600M in revenue: How did ButcherBox grow from a modest Kickstarter to $600 million in revenue in just a few years? Haje outlines the company’s path so far.
The Exchange: In his increasingly popular daily newsletter, Alex Wilhelm wonders: Has everyone been valuing software companies the wrong way all along?
Meta lays off thousands, FTX collapses, and Twitter has a very weird week by Greg Kumparak originally published on TechCrunch
Meta lays off thousands, FTX collapses, and Twitter has a very weird week

Daily Crunch: India bans PUBG and other Chinese apps

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India continues to crack down on Chinese apps, Microsoft launches a deepfake detector and Google offers a personalized news podcast. This is your Daily Crunch for September 2, 2020.
The big story: India bans PUBG and other Chinese apps
The Indian government continues its purge of apps created by or linked to Chinese companies. It already banned 59 Chinese apps back in June, including TikTok.
India’s IT Ministry justified the decision as “a targeted move to ensure safety, security, and sovereignty of Indian cyberspace.” The apps banned today include search engine Baidu, business collaboration suite WeChat Work, cloud storage service Tencent Weiyun and the game Rise of Kingdoms. But PUBG is the most popular, with more than 40 million monthly active users.

The tech giants
Microsoft launches a deepfake detector tool ahead of US election — The Video Authenticator tool will provide a confidence score that a given piece of media has been artificially manipulated.
Google’s personalized audio news feature, Your News Update, comes to Google Podcasts — That means you’ll be able to get a personalized podcast of the latest headlines.
Twitch launches Watch Parties to all creators worldwide — Twitch is doubling down on becoming more than just a place for live-streamed gaming videos.
Startups, funding and venture capital
Indonesian insurtech startup PasarPolis gets $54 million Series B from investors including LeapFrog and SBI — The startup’s goal is to reach people who have never purchased insurance before with products like inexpensive “micro-policies” that cover broken device screens.
XRobotics is keeping the dream of pizza robots alive — XRobotics’ offering resembles an industrial 3D printer, in terms of size and form factor.
India’s online learning platform Unacademy raises $150 million at $1.45 billion valuation — India has a new startup unicorn.
Advice and analysis from Extra Crunch
The IPO parade continues as Wish files, Bumble targets an eventual debut — Alex Wilhelm looks at the latest IPO news, including Bumble planning to go public at a $6 to $8 billion valuation.
3 ways COVID-19 has affected the property investment market — COVID-19 has stirred up the long-settled dust on real estate investing.
Deep Science: Dog detectors, Mars mappers and AI-scrambling sweaters — Devin Coldewey kicks off a new feature in which he gets you all caught up on the most recent research papers and scientific discoveries.
(Reminder: Extra Crunch is our subscription membership program, which aims to democratize information about startups. You can sign up here.)
Everything else
‘The Mandalorian’ launches its second season on Oct. 30 — The show finished shooting its second season right before the pandemic shut down production everywhere.
GM, Ford wrap up ventilator production and shift back to auto business — Both automakers said they’d completed their contracts with the Department of Health and Human Services.
The Daily Crunch is TechCrunch’s roundup of our biggest and most important stories. If you’d like to get this delivered to your inbox every day at around 3pm Pacific, you can subscribe here.

Daily Crunch: India bans PUBG and other Chinese apps