LA Startup Gives YouTube Creators Cash Up Front For Revenue Earned On Past Videos
Startup Pays YouTube Creators Cash Up Front For Revenue Earned On Old Videos
On Wednesday, Los Angeles-based startup Spotter claimed that by mid-2023, it will have invested $1 billion directly in YouTube creators in order to help them grow their brands.
This follows the announcement earlier this week that Spotter has raised $200 million in Series D funding from venture capital firm SoftBank Vision Fund, bringing the four-year-old startup to a valuation of $1.7 billion.
In addition to focusing on creators’ back catalogs, Spotter says the new funding will allow the company to help creators film and publish new video content through tools that optimize production recommendations and publishing practices.
Spotter says it has already licensed hundreds of thousands of YouTube videos, which have generated over 40 billion watch-time minutes monthly.
Previously, Spotter raised $500 million across three undisclosed funding rounds, using the capital to fund viral YouTube stars including YouTube sensation Jimmy Donaldson, also known as MrBeast, as well as Dude Perfect, Like Nastya, Smokin’ & Grillin’ wit AB, and more.
Spotter’s business model is inspired by David Bowie, who became the first musician to raise capital by investing in his back catalog. Spotter intends to use its hundreds of millions of dollars in funding to pay YouTube creators cash up front in exchange for the ad revenue they earn on past videos.
MrBeast says his partnership with Spotter helped him finance his own Spanish-language channel, adding 375 videos and increasing his viewership by over 300%.
In addition to Softbank Investment Advisers, Spotter’s investors include Access Industries, CoVenture, Crossbeam Venture Partners, GPS Investment Partners, and HighPost Capital.