Will Europe’s VCs catch up to the influencer craze?

· Source: Sifted · Field: Finance & Economics — Capital Markets & Investment Management, Entrepreneurship & Start-ups, Marketing, Branding & Advertising · Depth: Fundamental Awareness, short

Summary

Venture Capitalists (VCs) across both Europe and the US are increasingly focusing on influencer-investors and creator-led venture models, though Europe is reportedly "two years behind" the US in this trend. The article explores Europe's efforts to catch up, noting the emergence of its "first creator-led VC." It examines VCs' investment strategies in this evolving landscape, suggesting that VCs may not need to be hands-on when backing influencers. The discussion also highlights a shift towards decentralized networks rather than traditional social platforms for these investments. A significant challenge for Europe is the absence of a "centralized hub" to consolidate and drive this influencer-investor ecosystem, contrasting with the more developed US market.

Key takeaway

For European VCs evaluating creator economy investments, you must recognize the current two-year lag behind the US market. Focus your strategy on emerging creator-led VC models and explore opportunities within decentralized networks, moving beyond traditional social platforms. This shift is crucial to remain competitive and capitalize on the evolving influencer-investor landscape, even if it means adopting a less hands-on approach.

Key insights

Europe's VCs are two years behind the US in influencer-investor adoption, seeking new strategies.

Principles

In practice

Topics

Best for: Investor, Entrepreneur, Consultant

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Editorial summary, takeaway, and curation by AIssential. Original article published by Sifted.