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Creative Juice launches a $50M fund to invest in creators –

Banking app for online creators, Creative juice announces $ 50 million to create innovative businesses. Youtubers and other social media stars can apply for a cash advance to grow their business in exchange for cutting their income over a period of time, usually between six months and three years.

It looks like a loan, but it is not a loan (at least meaning that Creative Juice is not a bank, so they are not allowed to claim a loan.) or income-based investment. But the Juice Fund does not collect interest like loans. And if the creator fulfills the terms of their contract, and has not yet received enough money to return it to the Juice Box before their term expires, then it is the Creative Juice that eats the defects, not the creator.

So far, according to general manager Sima Gandhi, there are no issues with the creators being unable to repay the Creative Juice. This is in part because the Creative Juice is highly selective of its sponsors.

“The creators are the next generation [small and medium-sized businesses] America, “said Gandhi, former head of business development and strategy at Plaid, a finic untechorn.” If you are a product creator, you can now create an Instagram store, sell products, sell tickets , you can sell food. You can do anything that a normal business would do, and yet it is not treated as a business. “

It is difficult for innovators to get loans from banks, as their operations are under the control of your small business. Other remittance companies have also stepped in to help fill this gap such as Karat Financial, which gives creators access to business credit cards.

“Every plant needs capital to grow, and it is truly amazing that the creators have grown so fast without getting capital,” Gandhi told TechCrunch. The creators may use these funds to hire an assistant, rent a studio that makes the recording more efficient, product investors to sell, or buy new equipment.

Of course, there is a similar risk for the creator to take any kind of external funding involved – but Gandhi said the Creative Juice is successful only if the creators invest it as well. Creative Juice has secured a pool of $ 50 million from another lender, HCGFunds, so if the startup is not funded by innovators who will not be able to turn it into profit, then some, then Juice One the seeds were also taped.

“It is inspiring and adaptable,” Gandhi stressed. “One of the values ​​of the company is that we grow as the creators grow. We always have to talk about the creator first, and we will say no to the creators if we do not think they will take over the capital.

How it started

While at Plaid, Gandhi realized that although the creative economy was booming, traditional banks and lenders did not understand the business model behind a chef who shared viral foods with TikTok, or a fashion stylist on Instagram.

In 2021, Gandhi launched the Juice of Innovation alongside Ezra Cooperstein, the president At nighta management company that represents top digital innovations such as maven decoration Safiya Nygaardhantiile DALMYD and YouTuber stunt MrBeastalso sitting at the table of the Creative Juice hat.

The company started out as a financial management solution for innovators, helping them manage multiple revenue sources from various sources and sponsors, project their revenue and make in-app invoices. also gives YouTubers the ability to access their AdSense payments.

But when Mr Beeast tweeted in December 2020 that he hoped there was a way to fund the innovations, Gandhi and Cooperstein got an idea (… or maybe the tweet was a detailed marketing, but … who can tell?).

Shortly afterwards, Creative Juice teamed up with MrBeast to test this form of drop generators with a $ 2 million fund – and apparently, it worked well for the company to launch its second round of Finance Juice 25 times larger. In addition, Creative Juice has now raised $ 15 million in Series A led by Acrew Capital, with the participation of Meena Harris (lawyer, child writer and cousin of Vice President Kamala Harris), Concrete Rose , former NFL star Larry Fitzgerald and TikToker Jared Waldrom.

Each Juice Funds contract is different. Any entrepreneur can apply for Juice Money, and the company evaluates their existing business to see if it would be beneficial for both parties to write. If so, they agree on a percentage of the income the creator will share with the Creative Juice over a period of time, which is between six months and three years. Gandhi declined to share a percentage of the creators’ usual revenue share, but pointed out that it largely depends on the creator’s advice if they want a longer contract and a lower revenue share. or vice versa.

“Yes, we are a company. We want to make money. We are not philanthropists. But we want to make it truly responsible and sustainable for the ecosystem,” Gandhi said. “That’s why we do it. We want to see creators thrive and succeed.”

Contract terms indicate that the creator adheres to a specific performance schedule, which is usually everything they used to do – for example, if they upload three YouTube videos a week, then they are expected to continue posting the most at least three times a week.

Change and Click, a self-described entertainment technology channel, used Juice Funds to buy new equipment and hire a video editor. That income combined with 70% increased their income, which made it easier for them to buy out of the revenue-sharing contract with half of the remaining period.

Guitaro5000On the music channel, he used the Juice Cost to travel to new movie theaters, since he found out that his videos with specific locations did their best. As a result, his revenue increased by 50%, and he saw an increase in fan interaction.

Such channel Oompaville, Kobac Jo and Internet City also received Juice Funds.

How things are going

Creative Juice has received thousands of applications, but initially it has only about Juice Funding up to 20 creators. Gandhi said that so far, the Innovative Juice has not had any problems with an innovator who has not been able to measure their business enough in the beginning to get his money back.

“This is a risk, right? No one has done this before,” Gandhi told TechCrunch. wants to buy a secret investment backed by a creator. “

Other start-up entrepreneurs like Spotter have also tried to give YouTubers a lot of cash in advance to convert five years of royalties into a later booklet.

In both cases, there is a gamble on the end of the creator. These cash flows can, in some cases, be what YouTuber needs to grow their channel to the next level and generate more revenue in the long run. But there is always the risk that something will go wrong, and the independent artist will fall for the contract.

Both Gandhi and Aaron DeBevoise, Spotter’s CEO, told TechCrunch that their companies would never make a deal that they didn’t think would benefit the creator either. But it is difficult to predict how an investment can turn into a risky business, and creators must understand the risks involved in any type of new business transaction leading to experimental investment models.

It is important to note, however, that neither the Creative Juice nor the Spotter requires the Creators to take the loan. But no matter how legitimate the deal may seem, it is never a bad idea for private business owners to keep their guard up, even if it does happen.