From movie stars to athletes, content creators and for that matter even social media influencers, have turned into angel investors. As a result, companies such as Qohoo (creator economy startup), WYLD (social currency card company), Growth School (live learning platform), Wint Wealth (debt investment aggregator platform), The CAI Store (direct-to-consumer footwear company), among others have raised funds. “These creators are category leaders and enjoy a massive fan following in the world of social media. Being in the space over the last few years, they bring in their own set of expertise and an understanding of the masses, which further acts as a value addition for companies,” Akshay Bhatnagar, co-founder, HYPD (the creator-owned marketplace that secured funding from Bhuvan Bam, Tanmay Bhatt, among others), told BrandWagon Online.

According to industry sources, creators have invested anywhere between Rs two lakh- Rs 30 lakh across consumer companies and the creator economy. For Viraj Sheth, CEO and co-founder, Monk Entertainment, such investment is a win-win situation. “From the perspective of the brand, they know that the creator will push the brand wholeheartedly because the creator has vested interests in the growth of the company. The more the brand grows, the more the value of their equity in the company. With regards to the creator, they’re being part of the growth journey of a brand that they would anyway actively promote in a transactional manner,” he added. 

Furthermore, according to the latest report by digital marketing agency iCubesWire, 90% of consumers engage with influencers on a weekly basis on Instagram, Youtube and Snapchat.  “Influencers and creators act as a link between brands and consumers. Meanwhile, brands get unadulterated access to their consumers in terms of likes, dislikes, reactions, content choices, and product preferences. The same can then be applied towards the strategy of businesses and help them get benefits and grow out of this,” Masoom Minawala, global influencer, entrepreneur and investor, said (who has invested in companies such as The CAI Store, The Betel Leaf & Co, One Impression and FrontRow). Minawala has over 1.2 million followers on Instagram.  

Even as many of these creators have invested in startups rolled out in the gig economy space currently, experts believe that over the next few months, new formats or areas of investment are likely to emerge. “With more opportunities getting unlocked in areas such as non-fungible tokens (NFTs), web3.0, robotics, gaming and other new sectors, the investment space is likely to evolve further,” Kunal Kishore Sinha, co-founder and COO, ClanConnect, an influencer marketing startup, said.