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10 Comments

Investing in content creators?

I recently heard an idea that sounded very promising but I realized with surprise that there's no implementation yet.
It would be a marketplace where promising content creators from YouTube could issue "stock"s and investors could buy these. The creator would obviously get some cash and in exchange, the investor would receive a certain percentage of the creator's future income. So if the creator gets more popular, the investors would get more money.

What do you think? Is this a viable idea?

posted to Icon for group Ideas and Validation
Ideas and Validation
on April 6, 2021
  1. 1

    Check

    Bitclout
    Rally
    HumanIPO

    Btw I already run an exchange which is used by few hundred thousand traders. We did an internal survey and found of that people would be very keen to invest. But the trick here is how to ensure creator grow, become big and keep Sharing revenues.

    Also would those revenue be decent enough to keep investors interested. Returns should be safe and higher than stock market.

    We have built an exchange and willing to customise it as per needs. I think alternative assets are going up. If anyone want to build an exchange, we can provide in few days.

  2. 1

    Well this is happening now. With smart technology in NFTs , I think this is possible now!
    Take a look at this: https://www.sleakculture.com/

  3. 1

    I was pondering an interesting idea along the same avenue as investing in up and coming content creators (youtube mainly) that allows a group of investors (company) to take the creators under their wing. You may be asking how one would profit from this? Well, the investors would provide the creator with excess resources such as a platform that connects them with editors, graphic designers, seo experts, website developers, etc. The investors gain profitability from growth in channel viewership, percentage from merchandise sales, and potential of subscription based platforms (built by company) for viewership. Think of it as an educational portfolio of content creators ranging for various aspects from every industry. I am interested in what you all would think about this?

  4. 1

    An idea suited for a cryptocurrency project. I'm sure there's already something trying to do this.

    1. 2

      Hi Arrexus, you are right. This problem can be solved by smart contracts tech in NFTs. My team is working on something called Adense NFTs that are associated to a youtuber's adsense account. Take a look at this: https://www.sleakculture.com/

      1. 1

        Awesome! I posted this a year ago but now almost everyone in tech has heard of the term web3 (whether they like it or not).

        I know another project that is quite developed regarding YouTube as well.

  5. 1

    I am also thinking about this idea. I feel it worth pursuing but right now I don't have any bandwidth to do.
    My recommendation is-

    1. targeting some small countries creator where there is no such hard rules are present related to investing and other stuff.
    2. Start in a informal way, so you get to know what you-tuber/content creator and investor thinks and is it really they want.
    3. Start with fixed return, people love fixed return rather than uncertainty and also that will help you in marketing.
    4. Find social media platform where you can monetize early and you have to look for serious content creator who want to make big.
    5. Instead of targeting individual content creator, create a pool of content creator that will hedge for the risk and also for the return.
  6. 1

    Sam Lessin was just talking about this, and I don't think you are that far off in your thinking. As there become more varied vehicles to invest into companies, it's only natural that what can be given capital by VC or other institutional investors will change also.

    Acknowledging all the previous points regarding legality and compliance, I feel like this is where true creator economies need to go in order for this to be sustainable. Right now, the top creators earn through sponsorships or perhaps fan apparel. The monetization options need to change, and just like startups, that typically involves capital to scale bigger or faster for better opportunities. I imagine those investment notes won't involve IPOs or acquisition, but some form of rev share or dividend for the life of that career. It is all very exciting.

  7. 1
    • The Youtuber would first of all have to set up a company to then distribute shares. There's a whole load of regulation around this that will first need to be adhered to, to even distribute shares.

    • The Youtuber is the only person you are investing in technically - the risk is immense if something happens to the YouTuber (god forbid). If Nickmercs for example all of a sudden stops streaming, you can expect the share price to tank - majority of investors would not want that much risk

    • Why companies IPO is to increase their cash supply to then innovate or acquire other companies in their field. Not entirely sure what else a YouTuber would expect "growth" in after an IPO. Majority of the audience for a lot of gaming is organic, word of mouth and even then thats limited to a game cycle.

    • Age - I dont expect Dr Disrespect, PewDiePie, Ninja to be streaming when they're 60 years old. I do expect Microsoft to be there for the long term

    A better idea would be Arts and Collector Cars - nobody has created a fund for such things yet, not that I know off.

    I like the way you think though! Its creative! Keep it up.

    P.S. I am an investment consultant and I help/advise institutional clients where to invest their money - YouTubers is definitely not the one, but gaming and streaming platforms have become an interesting phenomenon in recent months,

  8. 1

    You need to talk to YouTubers and investors to know if it's viable, not IndieHackers. I'll present some challenges to you though:

    • Marketplaces are very hard to bootstrap. Unless you are a black belt in startups, don't do a marketplace. Building a marketplace is like trying to launch to separate startups at the same time and they are either both successful or neither is.
    • This issuing of stock to investors... well that's a super heavily regulated environment. Even if it's all make-believe, not real stock, if there's money changing hands, in the US, the SEC will want to have a word with you. Google for what an accredited investor is to start to see the tip of the iceberg.
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