• Creator startups defied funding woes by proving traction before pitching.
• Firms like Pietra and Agentio won millions by showcasing early revenue and uptake.
• Validating business viability provided key edge absent during Web3 boom years.
Summary
Amid this year’s venture freeze lies a handful of creator economy startups raising serious cash despite plunging valuations.
The secret for many? Demonstrating tangible product-market fit versus mere promises.
Sector deals and risky bets
Sector deal flow fell by nearly half over 2022 as investors fled risky bets, mirroring declines economy-wide. But standouts like influencer finance firm Karat and contract workflow provider Harbour still scored multimillion funding injections.
Rather than classic hockey-stick projections, the ability to showcase strong early uptake and even revenue seems instrumental for securing volatile VC backing nowadays.
Take merch platform Pietra, which helps creators launch e-commerce brands and nabbed $16 million in March. CEO Ronak Trivedi said displaying solid traction gave confidence during an otherwise “extreme period of contraction.”
A new historical edge
Other founders concurred that stress-testing business hypotheses before pitching provided a critical edge absent in past years.
So, while macro conditions decimated overall funding, some startups still thrive via an updated playbook.
Proving viability also reflected the founders’ reputations, with operator experience aiding the likes of Agentio and Vault despite dampened Web3 enthusiasm.
Of course, building for boom times is easier than surviving bust cycles. But by validating target customers early, this vanguard gives fellow creator-focused entrepreneurs a template to unlock capital in 2023’s harsh climate:
Have working technology and demonstrable adoption before asking for a cent.
Pietra, Agentio and 14 more lure millions from VCs by proving business traction
