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XAt VidCon, Investors Are Still ‘Betting Big’ on the Creator Economy
Kristin Snyder is dot.LA's 2022/23 Editorial Fellow. She previously interned with Tiger Oak Media and led the arts section for UCLA's Daily Bruin.
The creator economy is the bedrock of this week’s VidCon convention, which is drawing creators, companies, investors and fans alike to Anaheim to discuss the rapidly growing realm of digital content and entertainment.
To discuss how investors, in particular, are viewing the booming creator landscape, Thursday’s “Betting Big on the Creator Economy” panel featured the likes of MaC Venture Capital partner Zhenni Liu, Investcorp managing director Anand Radhakrishnan, Team8 Fintech managing partner Yuval Tal and Paladin co-founder and CEO James Creech.
Liu said that her Los Angeles-based VC firm is paying closer attention to the influence that creators are having on how consumers spend their time and money. She cited the recent “healthy Coke” viral trend, in which people mix balsamic vinegar and seltzer water as a soda alternative, as an example—citing how the number of people who have viewed the original TikTok video that set off the craze surpasses the Coca-Cola TikTok account’s number of followers.
This growing influence stems from the surging number of creators, Radhakrishnan said. With the pandemic forcing many to reconsider their career paths, he said people now view content creation as a legitimate professional route—quipping that these days, more children want to be YouTube stars than astronauts.
“As an older person, I thought this was the downfall of Western civilization,” the Investcorp managing director said. “At the end of the day, I think it reflects that this is real—and as an investor, we’re looking at ways to invest in the next great economies.”
Creech said that the growing creator sector rests on three main pillars: content creation, audience growth and monetization. The constant evolution of creator platforms does present a challenge for investors, however, with Liu noting that more creators are looking to Web3 as an alternative to traditional outlets often offering a smaller slice of revenues.
“As a result, we’re seeing creators who can’t figure out how to build their audience, monetize and distribute,” Liu said. “With Web3, this opens up a new opportunity. There's a lot of chaos, but chaos provides the opportunity for creators to rise up.”
Additionally, the shift toward short-form content means that more investment dollars will be redirected away from longer-form shows and films, Tal observed. And even with an increasingly likely recession on the horizon—one that already appears to be hitting the creator economy, as well as the wider tech, startup and venture capital sectors—Tal and the other panelists remained optimistic about the creator economy’s prospects moving forward.
“It is almost winter-agnostic,” Tal said. “The shift [toward the creator economy] is so massive that no [economic] winter can slow it down.”
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Kristin Snyder is dot.LA's 2022/23 Editorial Fellow. She previously interned with Tiger Oak Media and led the arts section for UCLA's Daily Bruin.
⭐️ Founders shine at Techstars LA & Space demo day and celebration
🔦 Spotlight
This Wednesday, Techstars hosted a fantastic in-person expo for the Fall 2023 Los Angeles cohort and the Fall 2023 Space cohort at the Peterson Automotive Museum. 💼🤝💡
The in-person expo followed the virtual demo days for both cohorts, letting founders mix with mentors, investors, and community members. It was a celebration after three months of hard work, marking a significant step forward for the companies.
The LA cohort, based in Los Angeles, shared their favorite local spots during their Techstars stint, like Nobu, the Slauson Swapmeet, Destroyer LA, Equator Coffee, Mandarin Coffee Stand, and La Tostaderia.
I had the chance to chat with the Techstars founders at the event, and 100% of them said Techstars was a worthwhile experience, particularly for the relationships it facilitated. They appreciated the connections and the supportive environments that allowed them to be open and gain the most from the experience. Even the remote space cohort echoed these sentiments, praising Techstars for intentionally fostering relationships within and outside the program!
Shout out to Techstars LA lead and friend of dot.LA Matt Kozlov for another impressive cohort! 🎉👥🚀
Read more about the Techstars LA companies in our previous article here.
🤝 Venture Deals
Actively Raising
- Sweetie a dating marketplace startup, is raising a $250K Angel Round. - learn more
If you’re a founder raising money in Los Angeles, give us a shout, and we’d love to include you in the newsletter!
LA Startups
- GameTree, a startup that aims to create inclusive, non-toxic, and friendship-driven gaming communities, raised a $1.7M Seed Round from a group of investors that including Expert Dojo, Corazon Capital and more. - learn more
- OurSky, a startup building a developer platform for accessing space data using a network of telescopes it owns and operates, raised a $9.5M Seed Round led by Upfront Ventures, with participation frpm Oceans Ventures, Venrex Investment Management, Marlinspike Partners, and Embedded Ventures. - learn more
- Sona, a web3 music startup, raised a $6.9M Funding Round led by Polychain Capital, with participation from Haun Ventures and Rogue Capital. - learn more
LA Funds
- M13 co-led a $3.3M Seed Round for Layla, a four-year-old Berlin startup that says it uses social media content and AI to help users discover, plan, and book their travel experiences. - learn more
- MaC Venture Capital led a $5.3M Seed Round for Cambium Carbon, a startup that repurposes wood destined for the landfill. - learn more
✨Featured Event ✨

It’s that time of year again!
Our friends at AI LA are hosting the third annual #LongLA Holiday Party on Tuesday, December 12th from 6-11pm at the Pluto Penthouse on Wilshire.
The #LongLA Holiday Party is supported by a syndicate of LA-based organizations to celebrate the holidays and give back to the local community. Besides an epic party with tacos, drinks, and groovy tunes, we also host a food, toy, clothing, and gas gift card drive, benefiting LA Regional Food Bank, Children’s Hospital LA, Midnight Mission, and Safe Parking LA.
Earlybird tickets are on sale now!
Want your event featured? Shoot us an email!
📅 LA Tech Calendar
Saturday, December 9th
- Lens Fest X - Los Angeles - Meet your fellow LA-based AR Creators for a night of food, games, and cutting-edge AR demos at the legendary Two Bit Circus arcade during this extended Lens Fest 2023 meetup!
Tuesday, December 12th
- Founders Table Lunch - Enjoy a wholesome and laid-back lunch experience with fellow entrepreneurs and featured guests Matt Monday and David Gull, the creators of Vital – a groundbreaking personalized meditation app infused with the power of AI.
- Digital Health Event: Bowling and Arcade Night - Join OCV Partners, Amboy Street Ventures and Cigna Ventures for an evening of bowling, arcade games and more! Founders and investors, in the Digital Health space, will connect and collaborate at the Mar Vista Bowlero.
Thursday, December 7th
- Amazon Ads Festive Fête: A Holiday Mixer - Amazon invites local marketing & agency leaders in the LA area to a festive gathering at TopGolf. Enjoy an afternoon of networking, food & drinks, and lively discussions to ring out the year. Secure your spot now as space is limited!
Have an awesome event coming up? Reach out to be featured on next week’s Newsletter!
📙 What We’re Reading
- Read about Alex, the 10-year-old hero who helped Pledge, the award-winning charitable fundraising platform, reach the milestone of raising over $100,000,000 for more than 50,000 nonprofits and charities around the world! - read more
- Spotify will cut 17 percent of its’ global workforce. - read more
- Netflix and Apple open doors to larger streaming bundles ! - read more
Christian Hetrick is dot.LA's Entertainment Tech Reporter. He was formerly a business reporter for the Philadelphia Inquirer and reported on New Jersey politics for the Observer and the Press of Atlantic City.
An LA AI Company Just Won Entertainment’s Backing
🔦 Spotlight
Hello LA.
The entertainment industry has spent the past several years debating what generative AI could take from creators.
This week, some of its biggest companies put money behind an AI startup promising to build something for them instead.
Los Angeles-based Stability AI raised $76M in Series B funding from an investor group that includes Electronic Arts, Sony Music Group, Universal Music Group and Warner Music Group. AMD Ventures and Pacific Alliance Ventures also joined the round, while LA-based MANTIS Capital and Sound Ventures are among the company’s existing backers.
The financing brings Stability AI’s total funding under CEO Prem Akkaraju to $232M, including two equity rounds and convertible notes. The company plans to use the new capital to expand its creative production tools, applied research and professional services across music, gaming and entertainment.
The amount is notable. The names attached to it are the bigger story.
Generative AI’s arrival in entertainment has been anything but quiet. Artists have questioned whether their work was used to train models without permission. Studios have faced pressure over how the technology could affect jobs. Record labels have pursued AI companies in court while simultaneously exploring how the same technology might fit into their businesses.
Now, several of the world’s largest entertainment companies are investing directly in one.
That does not mean the industry has resolved its concerns about AI. It means some of its biggest players would rather help shape the technology than wait to see what it becomes.
Stability AI is positioning itself for that opening. Rather than focusing solely on general-purpose models, the company is building tools specifically for professional creatives. Its recently launched Stable Audio 3.0 was trained on fully licensed music and lets artists generate, edit and arrange audio through a web platform or directly inside digital audio workstations.

That licensed-data approach is central to the pitch. The next phase of creative AI will not be decided only by which company produces the most impressive model. It will also depend on which companies can earn the trust of the artists, studios and rights holders whose work gives those models value.
For its new strategic investors, the round offers more than financial upside. It creates a closer view into how generative AI may change production, a voice in how the tools develop and an opportunity to establish rules before those rules are established for them.
For Stability AI, the backing provides something equally important: credibility inside industries that have every reason to scrutinize what it is building.
The company now has capital and access to some of the largest catalogs, franchises and creative workforces in entertainment. What it does with that access will determine whether this becomes a meaningful alliance or simply an impressive collection of logos.
Either way, the industry is no longer watching from a safe distance.
It has entered the room.
LA’s Air-Taxi Plans Are Coming Downtown
While Stability AI is trying to change how entertainment gets made, Archer Aviation wants to change how people get to it.
AEG and Archer announced plans to develop downtown Los Angeles’ first vertiport at L.A. LIVE, creating a potential new stop in Archer’s proposed electric air-taxi network ahead of the 2028 Olympic and Paralympic Games.

The planned site would sit beside Crypto.com Arena and allow passengers to travel to and from the entertainment district aboard Archer’s Midnight aircraft. The company says its network could turn drives that take an hour or longer into electric flights lasting approximately 10 to 20 minutes.
Archer has already identified SoFi Stadium, USC and Hollywood Burbank Airport as possible locations, with its recently acquired Hawthorne Airport expected to serve as the network’s central operating hub. As the official air-taxi provider of LA28 and Team USA, Archer has an unusually visible deadline for turning those plans into something tangible.
AEG and Archer have completed an initial feasibility study of the L.A. LIVE site, including reviews of land use, airspace, power availability and community impact. The next phase will examine operations and the passenger experience.
There is still a substantial distance between a proposed vertiport and a functioning air-taxi network. The infrastructure must be built, regulatory approvals must be secured and passengers must be persuaded that flying across the city is safer and more practical than staying on the ground.
Still, few locations could make that future feel more real than L.A. LIVE. Millions of people already pass through the district for concerts, games and major events. Placing a vertiport there would bring urban air mobility out of the concept stage and directly into public view.
Together, this week’s announcements show Los Angeles becoming a testing ground for two technologies still moving from promise toward everyday use.
One could reshape how entertainment is created. The other could reshape how Angelenos reach it.
In a city famous for both its creative industries and its traffic, that feels appropriately on brand.
More from this week’s LA startup and venture scene below.
🤝 Venture Deals
LA Companies
- Atorie raised a $9.5M seed round from investors including a16z speedrun, Night Capital and Lightspeed Venture Partners’ Jeremy Liew. The AI-powered fashion startup connects consumers directly with luxury manufacturers to offer high-quality goods without traditional designer markups, and will use the funding to expand logistics, production and its AI shopping tools. - learn more
- Long Beach-based Maglut Heavy Industries emerged from stealth with $3.1M in pre-seed funding from Wave Function, Nova Threshold and Julian Capital. The startup is developing a chromatography-based system to process and refine rare earth elements domestically, with pilot tests producing materials at more than 99.9% purity. - learn more
- MANTIS Venture Capital participated in Voya Energy’s $35M Series A, led by Energy Impact Partners and joined by John Doerr, StepStone, Founders Fund, Overmatch and Seven Stars. The Hayward-based startup will use the funding to commercialize its aluminum-fueled generators, which provide clean, off-grid power for data centers and other energy-intensive operations without combustion or local air emissions. - learn more
- Regeneration.VC participated in eComID’s $17M seed round, led by Systemiq Capital and joined by Course Corrected, Stadium and returning investor CapitalT. The Stockholm-based startup will use the funding to expand internationally and scale its AI-powered Shopping Passport, which helps retailers personalize sizing and product discovery while reducing returns. - learn more
- Clocktower Technology Ventures participated in Helcim’s $53M Series C, led by BDC Capital’s Growth Venture Fund and joined by new investors Curql Collective and LA-based Gold House Ventures. The Calgary payments company will use the funding to expand its platform, develop additional financial services and serve more small and midsize businesses across North America. - learn more
LA Exits
- Altruist agreed to be acquired by Vanguard, giving the Los Angeles-based wealth technology and custody platform greater resources to expand its tools for independent financial advisors. Altruist will continue operating as a standalone business under its existing leadership and brand after the deal closes, which is expected later this year pending regulatory approval; financial terms were not disclosed. - learn more
- Personality AI has been acquired by WildBrain for approximately $11M in cash and 1M WildBrain shares upfront, with additional payments tied to future performance. The startup develops kid-safe conversational AI experiences for entertainment characters, including “Hey Peppa Pig,” and will help WildBrain expand its franchises into interactive products across toys, apps and digital platforms. - learn more


