Creator Ventures Raises $45M for Consumer AI Startups

Creator Ventures Secures $45M for Consumer AI Focus

YouTube star Caspar Lee and former Bridgepoint investor Sasha Kaletsky are doubling down on their investment strategy. Their firm, Creator Ventures, has announced a new $45 million fund (Fund II), significantly larger than its initial $20 million fund.

Building on Past Successes

Creator Ventures' Fund I saw notable successes, including investments in Eleven Labs (an AI audio company now valued over $3.3 billion) and Wild (an eco-friendly deodorant company acquired by Unilever for approximately $286 million). The firm also backed Runna, acquired by Strava, and invested in Beehiiv and Praktika.

AI and Emerging Consumer Trends

Fund II will maintain its focus on consumer-facing companies, with a particular emphasis on AI. Kaletsky highlighted the immense potential of consumer AI apps within the trillion-dollar app store market.

“There’s a trillion dollars of spend that goes through the iOS and Android app stores every year, and if even a small proportion of that becomes taken by consumer AI apps, that’s going to be a whole lot of unicorns,” Kaletsky told TechCrunch.

Beyond AI, Creator Ventures is exploring emerging trends like microdrama streaming apps, which are gaining traction in the US. Kaletsky pointed to the surprising revenue generation of apps like DramaBox and ReelShort, exceeding established streaming services.

Another area of interest is AI-driven social networks. Creator Ventures portfolio company Status, a "Sims but social media" app where users interact with AI bots, boasts over 1 million users.

The Creator Connection

While not strictly a creator economy fund, Creator Ventures recognizes the synergy between creators and founders. Lee emphasized the importance of social media strategies for consumer internet startups and the increasing trend of founders becoming creators themselves.

“A lot of consumer internet founders find that the real exciting go-to-market strategy is around social,” Lee said. “A lot of these founders are becoming creators in their own right—and that’s something I love to get involved in as someone who comes from that world.”

Strong Backing for Fund II

Fund II is supported by prominent investors including Level, Cendana, Vintage, Isomer Capital, Sequoia, and other partners. This strong backing signals renewed confidence in the consumer internet sector.

With a larger fund and a clear focus on emerging trends, Creator Ventures is poised to continue its successful track record in the consumer internet and AI space.