TikTok, Influencer Panic and the Transformation of the Celebrity Economy

Sam Blake

Sam primarily covers entertainment and media for dot.LA. Previously he was Marjorie Deane Fellow at The Economist, where he wrote for the business and finance sections of the print edition. He has also worked at the XPRIZE Foundation, U.S. Government Accountability Office, KCRW, and MLB Advanced Media (now Disney Streaming Services). He holds an MBA from UCLA Anderson, an MPP from UCLA Luskin and a BA in History from University of Michigan. Email him at samblake@dot.LA and find him on Twitter @hisamblake

TikTok, Influencer Panic and the Transformation of the Celebrity Economy

Sam Golbach and Colby Brock know firsthand that platforms can disappear overnight.

The two started making sketch videos on the now-defunct social video website Vine back in 2013 when "it was not cool at all" to do that sort of thing, they said. When Vine shut down in late 2016, they migrated to YouTube, and later to Instagram, Snapchat and TikTok.

"Ever since we started, Colby and I have said, 'We need to do this (other app)' or else we'll have to go back to Kansas and not be able to have this lifestyle'," Golbach said.


For the two self-styled ghost-hunters, both 23, each new platform posed its own challenges, but also opportunities to expand their audience. And a presence on other social sites meant they weren't tied to the fate of any single company – like, say, becoming a pawn in a trade war between two geopolitical superpowers.

Sam Golbach and Colby Brock run. the "Sam and Colby" video series on YouTube, TikTok, Instagram and Snapchat, where they have millions of followers.Image courtesy of CAA

Their paranoia and hustle paid off. Sam and Colby's paranormal sketches now have 4.43 million subscribers on YouTube, as well as 1.2 million on Instagram and 1.4 million on TikTok. Their support team – which includes a management company (Scale Management), premier talent agency (CAA), and a fashion designer (FanJoy) – has helped them to sign a ghost-hunting book deal and launch a clothing line.

The duo's experience reflects the challenges social video stars face in building an audience on the shifting sands of social media, and how online influencer culture is changing and merging with the traditional business of celebrity.

Golbach and Brock are not worried about TikTok's potential shutdown, but plenty of their contemporaries are concerned.

"It's like you build a house and there's a hurricane coming to tear it down. It sucks," said Boman Martinez-Reid, who made his first TikTok comedy video in December 2019 and has since accumulated 1.3 million followers and representation from CAA.

Martinez-Reid is a prime example of how virtually anyone with a smartphone today can potentially reach an unlimited audience, and quickly.

"I was a media student with no plan after graduating and here I am: One of the only people I know to graduate with a job," the 22-year-old Torontonian told dot.LA.

That job comes courtesy of the growing industry of influencer marketing, which a Business Insider research report expects to exceed $15 billion by 2022, nearly doubling the $8 billion or so from 2019. This growth of brands trying to tap into individuals' online audiences has paralleled the broader shift of advertising dollars onto the internet, which just last year surpassed the cash they're putting toward TV or print.

Influencers who've made a name on one social platform are increasingly looking to build their brand on others – and to branch out into other media and beyond entertainment entirely.

Owning the Audience, Expanding the Influence

Ed Simpson, chief strategy officer at L.A.-based media group Wheelhouse Entertainment, calls the confluence of tech and celebrity that has enabled the influencer business a "seismic shift" in the entertainment industry.

"What we've never had before is talent that have owned their own audience," he said.

Boman Martinez-Reid made his first TikTok comedy video in December 2019 and has since accumulated 1.3 million followers and representation from CAA.

Photo by Simon Pella

And that talent, he added, is increasingly facing an important question: 'I've got the audience. Where do I go from here?'

"Those rising to the top recognize that they have to evolve and change," Simpson said.

Not every digital influencer wants to turn themselves into something bigger, said Kyle Hjelmeseth, founder of G&B, a digital talent agency. But for those who do, online platforms such as YouTube, Instagram and TikTok have some clear limitations.

First is the grueling demand of producing regular online video content. Golbach and Brock said that because anyone can post online videos and reach an audience, competition is fierce. That increases the pressure to make fresh material to stand out. It can be hard work, and the reward isn't necessarily satisfying.

"When you do traditional media, it's more long-term," said Golbach. "For a TikTok or Instagram post, people will forget about that in 24 hours."

That may be because their audiences skew much younger, a possible shortcoming of digital platforms in general, if your aim is to build a legacy.

"We have such a youth-heavy audience," said Thomas Petrou, co-founder of Hype House, a collective of TikTok stars profiled by the New York Times earlier this year, shortly after settling in the Hollywood Hills.

"The biggest thing would be having an audience that's not just Gen Z, but having everybody know who you are," said Petrou, whose 7.2 million TikTok followers fall short of fellow Hype House member Charli D'Amelio. The Times called her the "reigning queen of TikTok" with her 83.8 million followers. Alongside other members including Chase Hudson (24 million followers) and Kouvr Annon (11.5 million), Hype House's total following exceeds 150 million users.

That big audience is one large reason Wheelhouse, founded in 2018 by "Pawn Stars" creator Brent Montgomery, recently signed a deal with Hype House to produce a behind-the-scenes reality TV show. It will unfold in much longer installments than the 15 or 60 second clips on TikTok.

To the Hype House members, the Wheelhouse deal provides legitimacy, another perceived limitation of many social video platforms.

"The reason we want to go in that direction is because it solidifies us as more mainstream celebrities," said Petrou, who considers himself the entrepreneurial brains behind his camera-ready crew's operation. "I think you will see us collaborate with Wheelhouse across television and streaming and the audio world on many different types of projects."

Martinez-Reid, who noted he'd like a show deal, said traditional media is more "official" and "real" because it can reach "people my parents' age."

"If someone had uploaded Tiger King to YouTube it wouldn't have been the sensation it was," he added.

"You wouldn't ever get put on IMDb (the Internet Movie Database) for being a TikTok star," said Brock. "Social media doesn't have the respect of traditional media."

The New Celebrity Machine?

Andrew Graham, a digital talent agent at CAA, said his clients "have several unscripted (TV shows) in the fire," and that book deals like Sam and Colby's confer a "gravitas" that can be used as a "Trojan Horse" to bigger deals in linear media like streaming, film and podcasts.

Social video creators have made money by pointing fans to sponsors. An increasingly common next step has been to point fans to businesses of their own. Some have formed beauty companies. Petrou is working on a jewelry line. Hjelmeseth said several of his clients have launched their own apps.

This blurring of content creation, sponsorship marketing and business development is the entire basis of Wheelhouse's business model.

"We're a reflection of what's happening in the marketplace today. And we're building a business that's set up to address the needs of where technology and business are going," Simpson said. "We're set up to take digital talent, create content around them, connect them with brands, and create businesses around them."

He believes the trends inspiring this approach will ultimately shift the ways the broader entertainment industry does business.

Thomas Petrou is co-founder of Hype House, a collective of TikTok stars living and working in the Hollywood Hills.Image courtesy of Baby Grande PR

"That's what we believe is what the studio of the future will and must look like," Simpson said.

One sign that his vision is sound: Just as social media stars are looking to traditional media for legitimacy, traditional media stakeholders – celebrities as well as their support teams and studios – are increasingly turning to social media to build their own audiences.

"These trends were playing out already pre-pandemic, but this has accelerated that evolution," said Graham. "There is increasing interest from non-digitally endemic clients who want to own their own distribution."

Hjelmeseth said he sees more focus on social media from traditional media as well.

"We've seen/heard that many major studios require that an actor have a social presence before putting them in leading roles," he wrote to dot.LA. "I imagine studios now are baking in that they have to have some control over the social media of the talent and benefit from the profits of their talent's social, if (they're) doing sponsored campaigns."

What it all amounts to is that the merging of technology and celebrity is blurring the lines between traditional and new media.

"I see what I do crossing over to a more traditional landscape," said Martinez-Reid. "But it's an interesting question, because how do you even look at traditional media now? Even traditional media keeps changing."

---

Sam Blake mainly writes about tech + media and entertainment for dot.LA. Find him on Twitter @hisamblake and email him at samblake@dot.LA

https://twitter.com/hisamblake
samblake@dot.la
The $260M Robot Revolution Happening in Torrance

🔦 Spotlight

Hello Los Angeles,

Forget rockets. This week, the loudest move in the defense tech scene came from a factory floor in Torrance, where Hadrian secured $260 million to fuel its robot-run revolution.

The company, which builds AI-powered, robot-run factories for America’s aerospace and defense industries, announced the massive Series C raise, led by existing investors like Lux Capital and Founders Fund, along with a factory expansion loan facility arranged by Morgan Stanley. The funding will power Hadrian’s third factory (in Arizona), unlock full product manufacturing, and accelerate its mission to bring American manufacturing roaring back faster, smarter, and more automated than ever.

And here’s what makes them fascinating: Hadrian isn’t just churning out parts. They’re reinventing what a factory is. Their facilities look more like giant humming circuit boards than the smokestacks of old, packed with robots, AI, and ambition to move at the speed of software.

It’s the kind of vision you’d expect from a founder who speaks about reshoring U.S. manufacturing as if it were a moral obligation and then backs it up with billion-dollar contracts and steel-and-silicon proof.

We’ll be watching closely to see what Hadrian assembles next. One thing’s certain: the robots are already working overtime, and if you’re smart (or a robot whisperer), you might want to join them.

🤝 Venture Deals

LA Companies

  • Boulevard, a SaaS startup that helps salons and self-care businesses manage scheduling and operations, has raised an $80M Series D led by JMI Equity at a valuation near $800M. The funding will fuel enhancements to its AI-powered scheduling tools and support continued product innovation and market expansion. - learn more
  • Rwazi has raised $12M in Series A funding to expand its AI-powered decision-making platform, which helps businesses replace gut-based decisions with real-time insights and simulations based on consumer behavior. The round was led by Bonfire Ventures and will support the growth of Rwazi’s simulation engine and data infrastructure to help companies make more precise, data-driven decisions across marketing, product, and operations. - learn more
  • Lexington Bakes, an artisan bakery known for its gluten-free, organic oat bars and luxury brownies, has raised $1M in a seed round. The investment was led by Rainfall Ventures. The funding will help the company transition to co-manufacturing, expand its retail reach from about 100 to a projected 1,000 doors in the next year, and scale up its team and operations. - learn more

LA Venture Funds

  • TCG (The Chernin Group) participated in Substack’s latest $100M funding round, joining Andreessen Horowitz, and other investors. Their investment underscores confidence in Substack’s vision to grow its subscription publishing platform and expand its tools for independent writers and creators. - learn more
  • Acre Venture Partners participated in Zucca’s $5M funding round to help the Seattle startup scale its platform, which uses AI to design and develop plant-based food products faster and more efficiently. Their investment will support Zucca’s mission to create sustainable, health-focused foods and expand its operations. - learn more
  • Sound Ventures joined XMTP’s $80M Series B to back its vision of redefining how people communicate in the web3 world. With this funding, XMTP plans to scale its decentralized, privacy-focused messaging protocol, enabling secure, wallet-to-wallet conversations across the blockchain ecosystem. - learn more
  • Morpheus Ventures and Sage Venture Partners participated in Datavations’ $17M Series A funding round, with Morpheus joining as a new investor and Sage returning as an existing backer. Datavations, an AI-driven analytics platform for the building materials and home improvement industries, uses machine learning to deliver actionable insights on pricing, inventory, assortment, and supply chains. The funds will be used to grow the team, accelerate development of its Commerce Alert Hub, and expand its presence across North America. - learn more
  • Mucker Capital led the $3.3M seed round for Bidbus, an AI-powered consumer-to-dealer used car marketplace in the U.S. The platform enables car owners to auction their vehicles online and receive competing offers from dealers, while dealers gain access to high-quality inventory more efficiently. The funding will help Bidbus enhance its AI capabilities and expand into new markets. - learn more
  • Creative Artists Agency (CAA) participated as a strategic investor in Moonvalley’s $84M funding round, signaling strong industry confidence in the company’s development of a fully licensed, AI-powered video generation platform tailored for professional filmmakers and studios. CAA’s investment reinforces Moonvalley’s commitment to ethical AI practices and provides it with a direct pipeline to top-tier creative talent and entertainment partners. - learn more
  • MANTIS Venture Capital joined Zip Security’s $13.5M Series A funding round, backing the company's mission to deliver automated, AI-driven cybersecurity and compliance solutions. Their participation supports Zip’s efforts to expand its engineering team, build deeper platform integrations, and scale into regulated industry verticals like defense, finance, and healthcare. - learn more
  • Rebel Fund participated in Apolink’s oversubscribed $4.3M seed round, joining other notable backers such as Y Combinator and 468 Capital. By investing in this 19‑year‑old–led space tech startup, Rebel Fund is supporting Apolink’s mission to deliver continuous LEO satellite connectivity and facilitate its planned demo missions and constellation build‑out. - learn more

    LA Exits
    • Retina AI is to be acquired by Onar in a deal that will enhance Onar’s AI-powered customer analytics and personalization offerings. By integrating Retina’s predictive customer lifetime value technology, Onar aims to provide businesses with deeper insights into customer behavior and more precise targeting. The acquisition highlights Onar’s commitment to delivering data-driven solutions for optimizing customer relationships. - learn more
    • Nearsure, a U.S.-based tech services company with over 600 professionals across 18 Latin American countries, has been acquired by Nortal to bolster its AI and enterprise solutions in the Americas. Known for its AI-driven transformation, custom software, and partnerships with major platforms, Nearsure will merge into Nortal’s U.S. operations and rebrand later this year. The acquisition allows Nearsure to expand into U.S. and European markets while enhancing its AI, cybersecurity, and enterprise offerings. - learn more
    • InsideOut Sports & Entertainment, the event production company behind high‑profile sports events like The Pickleball Slam, Pro Padel League, and Major League Pickleball, has been acquired by GSE Worldwide, marking GSE’s first foray into live event production. Founded by tennis legend Jim Courier and Jon Venison, who will now serve as EVP and head of the new GSE Productions division, InsideOut’s team will integrate into GSE to help scale its live-event operations into new markets. - learn more

      Download the dot.LA App

      From Sunset Boulevard to Outer Space: LA’s Latest

      🔦 Spotlight

      Good Morning Beliebers and Los Angeles!

      While Justin Bieber’s new album dropped last night, here’s what else is making headlines in Los Angeles this week.

      Luma has opened its Dream Lab on Sunset Boulevard, boldly positioning itself at the forefront of AI-powered creativity. Known for transforming ordinary photos into cinematic 3D scenes, Luma is combining cutting-edge research with practical tools to build a playground for artists, engineers, and anyone ready to push the boundaries of visual storytelling. In their words: “From Hollywood blockbusters to the next generation of immersive media, this is where the magic happens.”

      Meanwhile, well beyond our skyline, SpaceX reportedly hit an eye-popping $400 billion valuation in a recent share sale, making it one of the most valuable private companies ever. The milestone reflects both investors’ fervor for the commercial space race and LA’s unrivaled role as the launchpad of aerospace innovation.

      LA continues to prove it can deliver on the ground, in the cloud, and far beyond the stars. See you next week.

      🤝 Venture Deals

      LA Companies

         
      • Varda Space Industries, the El Segundo–based company manufacturing pharmaceuticals in microgravity, has raised $187M in a Series C round led by Natural Capital and Shrug Capital, bringing its total funding to approximately $329M. The funds will support an increased launch cadence of robotic drug-production capsules, expansion of its El Segundo lab for biologic drug crystallization, and broader efforts to scale commercial microgravity-driven drug formulation and hypersonic reentry testing. - learn more

      LA Venture Funds

      • Rebel Fund participated in Vellum’s $20M Series A round, which was led by Leaders Fund. The company helps businesses build and optimize LLM-powered applications. Vellum plans to grow its team and speed up product development with the new funding. - learn more
      • Bold Capital participated in a $31M Series B funding round for Aqtual, a Hayward, California based precision medicine startup developing a cutting edge cell free DNA (cfDNA) multiomics platform. The capital will help commercialize Aqtual’s flagship rheumatoid arthritis diagnostic, currently being tested in a 1,300 patient trial, and support expansion into other chronic and autoimmune diseases. - learn more
      • Strong Ventures invested in VERAMORE, a skincare brand focused on addressing early signs of aging in women. Since launching in March 2022, VERAMORE has grown over 300% annually, expanded to more than 16 products, and entered markets including Japan, Singapore, Vietnam, Taiwan, Europe, and Korea. The funding will support its D2C growth, product-driven marketing, and planned global expansion starting with Japan in 2025 and the U.S. and Europe in 2026. - learn more
      • Mucker Capital joined a $3.7M seed funding round for Velvet Capital aimed at launching its DeFAI operating system and $VELVET governance token. Velvet’s vertically integrated DeFi toolkit combines AI-powered trading, portfolio management, APIs, and a native token to streamline on-chain investment for funds, DAOs, and individual traders. The funding will accelerate platform development, the rollout of its tokenomics, and broader adoption of its intent-based DeFi suite. - learn more
      • Btech Consortium Fund participated in a $8.5M Series A funding round for Castellum.AI, a New York based financial crime compliance platform that uses in‑house risk data, AI, and screening tools to help financial institutions manage AML/KYC compliance. The funds will be used to expand their team, enhance integrations with financial institutions, and accelerate adoption of their AI‑powered compliance solutions. - learn more
      • Bold Capital Partners joined the oversubscribed $45M Series A round for Centivax, a South San Francisco biotech company dedicated to developing a universal flu vaccine using a proprietary mRNA-based immune-engineering platform. Led by Future Ventures, the funding will help Centivax advance its lead candidate into Phase I clinical trials and expand its broader universal immunity pipeline targeting pathogens like RSV, HIV, and malaria. - learn more
      • Alpha Edison participated in Honor Education’s $38M Series A funding round for the San Francisco–based learning platform. Honor uses AI‑enhanced, mobile-first courses and credentialed programs to improve engagement and leadership development. The funding will be used to scale AI capabilities, personalize learning experiences, and expand the company’s operations and customer‑success teams to meet rising demand. - learn more
      • Wasserman Ventures participated in a $7M seed round for Fantasy Life, the fantasy sports platform founded by Matthew Berry. The funding will support the launch of Fantasy Life’s revamped platform, featuring new “Guillotine Leagues,” a modernized app experience, and enhanced content and tools to scale its audience and technology offerings. - learn more

      LA Exits
      • El Segundo based Kaye Capital Management, a fee only RIA with approximately $700M in assets under management and $300M in assets under advisement, was acquired by Modern Wealth Management, marking its 17th acquisition and pushing its total AUM over $8.5B. The deal strengthens Modern Wealth’s presence in California and adds Kaye’s institutional retirement plan expertise to its suite of financial and retirement solutions for clients. - learn more
      • NIRx Medical Technologies was acquired by Gilde Healthcare’s private equity fund and combined with Artinis Medical Systems to form a world-leading neuroimaging group. Both companies will retain their brands and locations while collaborating on R&D, product development, and global expansion of their functional near-infrared spectroscopy (fNIRS) tools to advance research in mental health, neurodegenerative diseases, and stroke rehabilitation. - learn more
      • Emotive, a conversational SMS marketing platform, has been acquired by Privy to create a unified solution for e-commerce brands that combines email, SMS, pop-ups, and real-time customer conversations. The integrated platform will help over 10,000 merchants simplify their marketing, personalize customer interactions, and strengthen relationships with dedicated strategists and transparent pricing. - learn more

      Download the dot.LA App

      Tinder, Starlink, and Apple’s New Studio: This Week in LA

      🔦 Spotlight

      Happy Independence Day, Los Angeles! 🇺🇸

      While you're celebrating freedom, here are some electrifying updates lighting up LA’s tech, satellite, and music scenes:

      🔥 Tinder mandates Face Recognition in California

        Image Source: Tinder

      Tinder is now requiring all new users in California to complete a biometric face check, a brief video selfie processed via FaceTec, to verify profiles are genuine. The video is deleted post-verification, though an encrypted face map remains while the account is active. This West Hollywood based move could redefine trust, safety, and privacy in mainstream consumer apps.

      🌐 Starlink clears hurdle to launch in India

      Elon Musk’s SpaceX backed Starlink has cleared most regulatory and licensing hurdles with India’s Department of Telecommunications, marking a key step toward launching satellite broadband in one of the world’s fastest growing markets. Final approvals from the national space regulator are pending, and services, expected to deliver high speed connectivity to underserved regions, could launch in the coming months. This is a major milestone for Starlink’s global expansion.

      🎧 Apple Music opens Culver City creative hub

        Image Source: Apple

      Apple Music is celebrating its anniversary by launching a brand new 15,000 square foot, three story studio in Culver City. The facility, featuring a 4,000 square foot soundstage, spatial audio suites, podcast booths, and more, is designed by Eric Owen Moss and slated to open mid August. It solidifies LA’s reputation as a creative powerhouse and reaffirms Apple’s commitment to investing in and nurturing our city's cultural ecosystem.

      From dating apps to deep space to sound stages, LA isn’t just watching the future unfold, we’re building it.

      Here’s to independence, imagination, and everything this city dares to launch next. Happy Fourth, Los Angeles.

      🤝 Venture Deals

      LA Companies

      • Castelion has raised a $350M Series B round led by Lightspeed Venture Partners alongside Altimeter Capital to scale its hypersonic missile production capabilities. The El Segundo-based defense startup plans to use the funds to expand manufacturing, accelerate testing through its SpaceX-inspired rapid development model, and position itself as a cost-effective supplier of hypersonic weapons to the U.S. military and its allies. - learn more
      • Earth Sama, a Calabasas, California–based climate-tech platform that helps rural farming and Indigenous communities generate and manage carbon credits, secured investment from Omtse Ventures. The funding will support the rollout of Earth Sama’s blockchain-powered field app, climate-creator platform, and smart-contract tools to scale community-led carbon credit projects globally under the Paris Agreement’s Article 6.4 framework. - learn more

                LA Venture Funds

                • Plassa Capital participated in Metafide’s $3.275M funding round. Miami based Metafide, the creator of SURGE, a gamified trading platform that combines AI neural networks and human insight, will use the funds to scale and launch SURGE into the market. - learn more
                • BOLD Capital Partners participated as a founding investor in Syntis Bio’s $33M Series A round, with an additional $5M in NIH grants. The Boston-based biotech is developing oral therapies for obesity and rare diseases, and the funding will help advance its SYNT platform, moving its lead obesity treatment, SYNT-101, into Phase 1 trials and supporting development of SYNT-202 for homocystinuria. - learn more
                • BAM Ventures participated in Cred’s $15M seed round for its predictive intelligence startup. San Francisco based Cred uses AI to unify company data with real time market signals and deliver actionable insights for sales and operations. The funding, led by defy.vc, will be used to scale Cred’s platform, expand its customer base, and grow team and product capabilities. - learn more
                • BOLD Capital Partners participated in Gallant’s $18M Series B round to advance its ready-to-use stem cell therapies for pets. The funding, led by Digitalis Ventures with additional support from NovaQuest Capital, will help Gallant bring its off-the-shelf regenerative treatments to market. - learn more
                • Rebel Fund joined the seed round for Rocketable, contributing to the $6.5M raised to build a portfolio of fully automated SaaS companies. San Francisco-based Rocketable, backed by True Ventures and others, uses AI agents to operate acquired software products, and Rebel’s support will help scale both the platform and acquisitions. - learn more 
                        LA Exits
                        • Leasepath, a cloud-first provider of equipment lease and loan management software, has been acquired by Solifi to enhance its mid-market offerings. The deal allows Solifi to expand Leasepath’s Microsoft Dynamics-based platform into new global markets while keeping Leasepath’s team and leadership in place. - learn more

                                  Download the dot.LA App

                                  RELATEDEDITOR'S PICKS
                                  Trending