Creator Ventures Secures $45M Fund to Back Consumer Internet and AI Startups

In a positive development for the consumer internet startup ecosystem, Creator Ventures has announced the successful raising of its second fund, securing $45 million. This new fund will be directed towards supporting seed and pre-seed ventures, particularly those focused on consumer-facing internet companies with an increasing emphasis on Artificial Intelligence (AI).

The story of Creator Ventures’ origins is quite unique. Caspar Lee, a prominent early YouTube personality, recounted in a TikTok video how a LinkedIn message led to a significant investment opportunity. Initially ignoring a pitch for an eco-friendly deodorant startup called Wild, Lee was later prompted by his cousin, Sasha Kaletsky (then an investor at Bridgepoint), to consider investing in the seed round. This decision proved fruitful when Unilever acquired Wild for approximately $286 million (£233 million) just five and a half years later.

This success paved the way for Kaletsky and Lee to establish Creator Ventures in 2019. Their initial $20 million fund has already demonstrated a keen eye for promising startups. Eleven Labs, a leading AI audio company currently valued at over $3.3 billion, benefited from Creator Ventures’ Fund I. Moreover, Runna, another company backed by Creator Ventures, was acquired by the popular running app Strava shortly after the Unilever-Wild deal. Their investment portfolio also includes the rapidly growing newsletter platform Beehiiv and AI language learning app Praktika, where they led the seed round.

Building on six years of experience with their first fund, Creator Ventures Fund II will maintain its focus on consumer-facing companies, with a heightened interest in AI-driven innovations. “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, Kaletsky is also observing emerging trends within the consumer internet landscape, particularly highlighting the potential of microdrama streaming apps. These apps, already popular in Asian markets, are beginning to gain traction in the U.S. market. He noted the pricing strategies of apps like ReelShort, where users can spend a significant amount per week, exceeding the cost of traditional streaming services like Netflix.

According to data from Appfigures, microdrama apps like DramaBox and ReelShort have generated substantial revenue through in-app purchases in the U.S. this year, reaching $99 million and $152 million, respectively. These figures represent significant year-over-year growth compared to the same period in 2024.

Creator Ventures is also exploring more experimental ventures, such as Status, a social network-like app where users interact with AI bots rather than real people. This concept, described as “Sims but social media,” has reportedly attracted over 1 million global users since its launch earlier this year.

While not exclusively focused on the creator economy, Creator Ventures recognizes the synergy between startup founders and content creators. Lee emphasizes the importance of social strategies in go-to-market approaches and appreciates the entrepreneurial spirit of founders who are also becoming creators.

Fund II is supported by a diverse group of investors, including Level, Cendana, Vintage, Isomer Capital, and Sequoia. Kaletsky notes that some of these backers are returning to consumer-focused investments after a decade-long hiatus, signaling a renewed interest in the potential of the consumer internet space.

“I think, hopefully, people are starting to see the potential of consumer in this era,” Kaletsky said. Lee added, “It’s nice for us to be able to invest in things that our friends and family can come across.”