Spotter, a startup dedicated to supporting creators with underwriting and AI tools, has successfully raised $7.4 million, as revealed in a Form D filing confirmed by TechCrunch. Although a representative for Spotter verified the authenticity of the filing, no further details were disclosed.
This new funding round is significantly smaller compared to Spotter’s last major raise, which was a $200 million Series D led by SoftBank in 2022, when the company’s valuation hit $1.7 billion. Spotter’s mission is to provide essential financial support to prominent YouTubers like MrBeast and The Try Guys, giving them upfront capital to expand their operations while allowing Spotter to license some of their content for several years. Notably, Spotter does not take copyright or intellectual property from the creators; it recoups its investment by earning ad revenue from the licensed content.
To date, Spotter has invested approximately $940 million across more than 735 YouTube channels, as indicated on its website. This business model has gained traction in the creator economy, with other platforms such as Jellysmack and Creative Juice adopting similar investment strategies.
Creators often face challenges in obtaining funding from traditional banks, despite running profitable businesses. Innovative startups like Karat have recognized this gap in the market, offering financial products tailored for creators, including business credit cards. In some cases, venture capitalists have made direct investments into creators to facilitate growth efforts.
Spotter’s unique positioning means it can provide significant funding to creators, who largely lack alternative financing options. Those who partner with Spotter report positive outcomes; for instance, MrBeast utilized his initial funding to establish a Spanish-language channel, successfully dubbed to attract Spanish-speaking viewers. Spotter noted that MrBeast’s collaboration led to a remarkable 300% increase in viewership, totaling 1.35 billion monthly views across his various channels.
“Creators have engaged in subsequent deals with us, showcasing the ongoing benefits of reinvesting in their success,” explained Spotter’s founder and CEO Aaron DeBevoise in an interview with TechCrunch. “It’s not a one-off situation; artists frequently return for additional funding as they witness tangible growth.”
While Spotter has not disclosed the intended use of the latest funding, it coincides with the recent launch of Spotter Studio, an innovative suite of AI-driven tools designed for creators.
