--- title: The creator economy goes boom, and not in the good way - The Hustle description: If your startup serves influencers, you may want to update your resume. image: https://hs-sbup.thehustle.co/hubfs/The%20Hustle%20News/Assets/Images/1858892708-httpsthdaily.s3.us-west-1.amazonaws.comfinal_size-creators_20230614214838.webp --- # The creator economy goes boom, and not in the good way ![Ben Berkley](https://53.fs1.hubspotusercontent-na1.net/hubfs/53/assets/hubspot.com/web-team/WBZ/HubSpot%20Media/Blog%202021/Images/Nav/Optimized/TheHustle_Icon_Dark.svg) [Ben Berkley](https://hs-sbup.thehustle.co/author/ben-berkley) Published: June 20, 2023 Updated: October 11, 2023 Gold rushes are exciting — unless you’re the one with an empty pan at the end. ![creator](https://hs-sbup.thehustle.co/hs-fs/hubfs/The%20Hustle%20News/Assets/Images/1858892708-httpsthdaily.s3.us-west-1.amazonaws.comfinal_size-creators_20230614214838.webp?width=595&height=400&name=1858892708-httpsthdaily.s3.us-west-1.amazonaws.comfinal_size-creators_20230614214838.webp) Take it from startups built to serve creators, many of which are now coming up short on nuggets. #### **But oh, what a rush it was** Since 2021, US businesses selling products and tools that support creators — the social media influencers who make the world go ‘round — have raised $8.6B+, [per](https://www.theinformation.com/articles/a-reckoning-arrives-for-creator-economy-startups) *The Information*. That hasn’t been the case lately — fundraising for the sector is down 90%+ this quarter compared to the same time two years ago — and now some businesses are starting to meet their makers (to tell them they can’t help them produce viral content any longer). - Since the start of 2022, 18+ creator startups have either been acquired or shuttered, according to *The Information*, and many more are running out of cash or pivoting away from creators. #### **What went wrong?** A few creators have done well ([very, very well](https://www.fool.com/the-ascent/personal-finance/articles/this-side-hustle-makes-content-creators-like-mrbeast-millionaires/)) for themselves, but most don’t make enough money to pay for specialty services. Companies were betting on the emergence of the fabled [creator economy middle class](https://hbr.org/2020/12/the-creator-economy-needs-a-middle-class), and that didn’t materialize: - Only 12% of full-time influencers make $50k+/year; 46% don’t make four digits, according to Linktree — a creator company that aptly [just shed 27%](https://www.afr.com/technology/linktree-sacks-a-quarter-of-its-staff-20230606-p5dea7) of its staff. **Of note:** Creator opportunities are narrowing, but want to buck the trend? Figure out how to uncomplicate [taxes for pet influencers](https://techcrunch.com/2023/04/08/pet-influencer-taxes/) and you’ll be internet royalty. Topics: [Creators](https://hs-sbup.thehustle.co/tag/creators) ## Follow us on social media prev next - ![Gen Z creators are making money on Fanfix](https://hs-sbup.thehustle.co/hubfs/The%20Hustle%20News/Assets/GIFs/1072624401-final_size-creator_20230403233124.webp) ### Gen Z creators are making money on Fanfix - ![Sephora and TikTok team up](https://hs-sbup.thehustle.co/hubfs/The%20Hustle%20News/Assets/Images/1932755138-HS-News-Brief_2023-03-15T005056.304Z.webp) ### Sephora and TikTok team up - ![From backyard trick shots to a $100m theme park](https://hs-sbup.thehustle.co/hubfs/The%20Hustle%20News/Assets/Images/707650258-dude-perfect-graphic-1.webp) ### From backyard trick shots to a $100m theme park Pop up for Subscribe to The Hustle Daily Newsletter Subscribe to The Hustle Daily Newsletter Get the 5-minute news brief keeping 2.5M+ innovators in the loop. Always free. 100% fresh. No bullsh*t. 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