TLDR:
- Eight early-stage creator startups have shut down in the last 15 months due to lack of funding.
- This brings the total number of closures since 2021 to 19, with two more in bankruptcy.
Article Summary:
Last week, The Information published a list of creator economy startups that may be in need of new owners as they have not raised significant funding in over two years. An analysis revealed that at least eight of these startups that have not received funding since early 2022 have shut down in the last 15 months. This recent wave of closures adds to the total number of creator startups that have shut down since 2021, now totaling 19 closures with an additional two in bankruptcy. Despite these closures, it’s important to note that these represent only a small fraction of the 500-plus startups tracked by the database.
The impact of evaporating VC funding on creator startups is clear as these closures demonstrate the challenges faced by early-stage companies in the creator economy space. While the creator economy continues to thrive and attract attention, these shutdowns serve as a reminder of the financial risks and obstacles that many startups in this industry face.
