Hello!

Before we get to the rest of today's newsletter, we have the latest update on TikTok. On Tuesday night, my colleague Sylvia and I reported TikTok's plans to shut off its app for U.S. users on Sunday, the day a U.S. law will ban the app, unless the Supreme Court intervenes.

That news is causing quite a stir among creators, their managers and users of the app, who thought they'd still be able to use the app for a time after the law took effect. That doesn't seem like it will be the case. 

Under TikTok's plan, U.S. users opening the TikTok app will see a pop-up message directing them to a website with information about the ban, we reported. TikTok is giving users the option to download all their data. If I were you, I'd start saving your favorite TikTok videos now. 

On to other news…

Funding for U.S. creator economy startups rebounded in 2024 after two years of declines, according to the latest data from The Information's Creator Economy Database. 

As we outlined in a story on Wednesday, that's a positive signal for the creator economy. Even as venture capital for the sector dipped over the past two years, there were still signs of momentum, including advertisers shifting more of their budgets to influencer marketing and individual creators growing their businesses. At the same time, dozens of startups have agreed to be acquired or shut down, suggesting there won't be room for everyone.

Startup funding was particularly strong in the first half of 2024, matching all of the prior year. The rebound faded in the third quarter, when there were no deals of more than $100 million, before resuming in the fourth quarter, when funding rose nearly 32% from the prior year, to $254.9 million.

The number of U.S. creator economy deals declined by more than 13% to 79 during the year, according to The Information's data. 

Here are the Q4 highlights:

• Duetti, a startup buying music rights from independent artists, scored the quarter's largest deal by raising $34 million in equity and $80 million in debt, boosting the funding total.

• Three of the five biggest deals during Q4 were for companies using artificial intelligence. Genmo, an AI video generating startup, said it had raised $28.4 million in Series A funding led by NEA in October. PlayAI, a voice AI startup for creators, developers and businesses, raised a $21 million seed round in November co-led by Kindred Ventures and 500 Global. 

• Funding for startups outside of the U.S. fell from the prior year for a third straight quarter, but Q4 marked the steepest drop. It could be an indication that investors are focusing their bets on creator economy startups in the U.S., the heart of the industry.—Kaya Yurieff and Akash Pasricha

Here's what else is going on…

Deals & Debuts

See The Information's Creator Economy Database for an exclusive list of private companies and their investors.

Snapchat announced a new marketing campaign featuring creators, including podcaster Harry Jowsey and Loren Gray, who are promoting why they like the app.

Netflix released a trailer for a new drama called "Apple Cider Vinegar," which is out next month and is based on the true story of an Australian influencer who fraudulently claimed she cured her brain cancer with wellness methods.

Nikita Bier announced his newest app, Explode, which allows users to send disappearing messages on Apple's iMessage feature. Bier previously founded anonymous polling app TBH and anonymous compliments app Gas. The first was acquired by Facebook and the second by Discord. Both companies eventually shut down the apps. 

Bier said the app was built in spite of Snapchat. He said he met with Snap CEO Evan Spiegel to discuss acquiring his previous company two years ago, and soon after Snap kicked off his previous app from their developer platform. Snap declined to comment. 

Pixelfed, a decentralized photo-sharing alternative to Instagram, launched a mobile app this week. The service runs on the same open source protocol as X alternative Mastodon.

Policy Watch

Brazil's government said Meta Platforms' content policy changes last week don't protect fundamental rights in the country and may lead to violations of its laws, Reuters reported.

The European Union is reassessing its probes into big tech companies including Apple, Meta and Google, the Financial Times reported. This comes as U.S. tech executives including Meta CEO Mark Zuckerberg press President-elect Donald Trump to intervene in European regulatory efforts. Zuckerberg last week said Trump should stop the EU from fining American tech companies. 

Creator Corner

Lia Haberman, Jerry Won and Zach Ferraro are among the LinkedIn creators hosting a virtual fundraiser on Thursday at 11 am PT / 2 pm ET to support the YMCA of Metropolitan Los Angeles, which has been collecting goods and organizing volunteers following devastating wildfires in the city. As part of the virtual event, these creators will give attendees live feedback on their LinkedIn profiles.

Kate Lindsay is the new co-host of Slate's internet culture podcast ICYMI. The freelance tech and culture journalist also writes Embedded, an internet culture newsletter, on Substack.

Thank you for reading the Creator Economy Newsletter! I'd love your feedback, ideas and tips: kaya@theinformation.com. 

If you think someone else might enjoy this newsletter, please pass it forward or they can sign up here: https://www.theinformation.com/newsletters/creator-economy

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