Viral

YouTube star MrBeast could hit billionaire status with the help of VC funding, as investors look to “fans as a service”

Snacks / Thursday, October 27, 2022

Spend 100 days in a circle, win $500K… typical MrBeast. YouTube star MrBeast has 107M+ subscribers thanks to viral videos featuring elaborate stunts and giveaways (his “Squid Game” reenactment has nearly 300M views). Now he’s said to be looking for $150M in fresh funding to expand his Beast-based businesses:

  • In January: MrBeast launched his snacks biz (dubbed: Feastables), which has already made $10M+ in sales.
  • Last month: The first MrBeast Burger restaurant opening attracted 10K fans, and the burger brand is forecast to earn millions this year.
  • Beasty billions: The desired funding round would value MrBeast’s empire at $1.5B — the largest valuation for an influencer-led biz.

Venture capital → creator capital... Investors are racing to put their money in social-media startups as overnight sensations emerge from platforms like TikTok and YouTube. VC funding for creator startups has already topped $637M this year, on pace to beat last year’s record. Now some of the biggest social stars want in:

  • TikTok big shot Charli D’Amelio and her family launched a venture-capital fund called 444 Capital in March.
  • Last year a venture firm invested $15M in startup Pietra, which helps influencers launch their own product lines (think: skincare).

Creators offer fans-as-a-service… Social-media stars are ripe targets for investors given their ability to make content, build audiences, and capitalize on both — all in a self-promoting cycle of content, eyeballs, and products. Mega-creators like MrBeast can offer their empires on a platter, which could translate to big returns. Last year, MrBeast generated $54M in revenue, or $147K/day.

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