Creator economy faces investor fatigue, but influencer marketing is still kicking

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VC funding for creator-focused startups has plummeted in the US, even as these startups multiply. Last year, funding dropped by 51% YoY, while the number of creator-related startups increased by 550%, per The Information. This is part of a greater trend of cooling VC investment.

Beyond the chart: “VC investment is just one part of the picture,” wrote our principal analyst Jasmine Enberg. Even as investors pull back from the creator economy and brands from social media advertising, influencers remain an economical way to engage audiences. US influencer marketing spend will grow by 23.4% this year to reach $6.16 billion, according to our forecast.

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