OnlyFans’ profitability proves the creator economy boom was real enough


Like many sectors, creator-focused startups had a simple time of attracting funding in 2020 and 2021. However enterprise capital funding into this class slowed down considerably beginning within the second half of 2022: going from 42 rounds value $336 million in Q2 2022, to solely 19 rounds value $110.2 million in Q3 2022.

On the time, Nate O’Brien of Roadrunner VC said it best: “The creator bubble is popping.”

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As is usually the case with hyped sectors, they find yourself deflating when the market isn’t favorable. And it will get worse should you’re in a class that depends upon the fickle promoting market, which is strongly uncovered to macroeconomic fluctuations. However extra importantly, the rise of the creator economic system was largely pushed by elements that proved to be fairly momentary.

“The expansion within the creator house was fueled in two elements: by COVID and [by] the growth in e-commerce (the first advertiser within the creator economic system). Folks have largely returned to their atypical lives, and e-commerce has reverted to its typical tempo, so the slower development of the creator house isn’t a surprise,” Coventure associate Brian Harwitt advised TechCrunch+ in a latest investor survey.

Positive, it isn’t stunning, however it nonetheless implies that new startups hoping to resolve issues for creators and assist them generate income are at this time typically struggling to lift cash, and possibly increase as effectively.

Enterprise rounds and youthful startups type solely a part of the image, although. There are numerous outliers to be discovered should you merely look at the set of firms that raised loads of money earlier than the advert market began to chill down, and chief amongst them is OnlyFans. It’s truly the most effective firms within the house proper now, interval.


It’s typically tough to get a superb image of the state of some companies, particularly late-stage startups and huge personal tech firms, as we normally solely have incomplete or delayed information to check. With OnlyFans, we’ve robust and full data; it’s merely dated. Due to data from its British parent Fenix International, we’ve OnlyFans’ outcomes for its fiscal yr ended November 30, 2022, which is principally all of calendar 2022. Huzzah!


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