Cobalt Raises $2.8M Seed to Empower Creator Product Launches

Monetizing Influence: Cobalt Empowers Creators to Launch Products

For online content creators and influencers experiencing audience growth, identifying optimal monetization strategies can often present a challenge. While some may succeed through exclusive content subscriptions or sponsored collaborations, those possessing innovative concepts and an entrepreneurial mindset can now utilize their influence to introduce new products to the market.

Introducing Cobalt: A Creator-Focused Product Launchpad

Cobalt provides a platform designed to assist creators in transforming their ideas into marketable goods. This encompasses everything from entirely novel, custom-designed products to specialized formulations, such as unique perfume blends.

The Cobalt marketplace connects creators with a network exceeding 250 pre-approved professionals. These experts specialize in crucial areas like product design, sourcing of materials, manufacturing processes, engineering solutions, and overall business development.

Developing a bespoke product, such as a non-digital entertainment system for children, currently incurs a design cost of $1,000 through Cobalt. Creators seeking pre-existing, private-label products can engage a Cobalt expert for sourcing assistance at a cost of $100.

Currently in its beta phase, Cobalt’s founder and CEO, Elle Shelley Black, reports that approximately 80% of the 200 products presently in production are custom creations. Furthermore, over 7,000 potential entrepreneurs have registered on Cobalt’s waitlist, which concludes today with the platform’s public launch following its beta period.

Beyond Superficial Trends: A Commitment to Ethical Production

Cobalt’s offerings extend beyond typical influencer-driven merchandise. The company is intentionally avoiding the development of apparel items, reflecting Black’s concerns regarding the environmental consequences of the fast fashion industry.

An illustrative example of a custom product is a protective mask for horses, designed to shield them from the effects of wildfire smoke. This innovation stemmed from a creator—an enthusiastic equestrian—who was worried about the health of her animals amidst the California wildfires.

Jenna Smith, the founder of Growcery, a startup specializing in small-batch hydroponic produce, also utilized Cobalt to bring her venture to fruition, serves as another example.

Cobalt’s Fee Structure and Platform Benefits

Creators are subject to a 10% platform fee on each transaction. Experts utilizing Cobalt’s services pay a 5% service fee, a rate significantly lower than that charged by platforms like Fiverr, which levies a 20% fee.

Notably, once a creator’s product is established and sales commence, Cobalt does not impose any further charges on their revenue.

“These pricing levels are quite accessible,” Black stated in an interview with TechCrunch. “Cobalt offers free account creation, and creators can directly communicate with sourcing agents and experts without cost. This initial connection and access to expertise is incredibly valuable.”

Maintaining Platform Engagement

While it’s theoretically possible for creators to establish connections through Cobalt and then pursue collaborations independently, bypassing platform fees, Black anticipates that the platform’s convenience will encourage continued usage after the initial product launch.

“We’ve streamlined the payment and invoicing processes,” Black explained. “Alternatives like Venmo aren’t suitable for handling substantial vendor payments, such as $10,000 to overseas suppliers.”

Differentiating Cobalt: Ethical Manufacturing and Latin American Investment

A growing number of startups, such as Pietra, are emerging to facilitate the transformation of TikTok personalities into business leaders. However, Cobalt distinguishes itself through its investment in manufacturers located in Latin America, all of whom undergo rigorous vetting to ensure adherence to ethical labor practices.

As a Latinx founder, Black prioritized building a company that collaborates with other underrepresented groups within the technology sector. She reports that 85% of Cobalt’s investors come from diverse backgrounds.

Cobalt’s $2.8 million seed funding round included a strategic partnership with A&H Haiat y Amezcua, a Mexico City-based fund instrumental in IKEA’s expansion throughout Latin and Central America.

Focus on Sustainability and Ethical Practices

“Our focus is on minimizing supply chain costs, reducing friction, prioritizing sustainable materials, and connecting as many ethical manufacturers to the platform as possible,” Black told TechCrunch. “We are initially concentrating on Latin America, particularly Mexico, due to its logistical advantages and the potential for humane working conditions, which we will verify before onboarding any manufacturer.”

Looking Ahead: Public Launch and Continued Development

With the secured funding, Cobalt aims to bring its product to market and continue enhancing its suite of creator tools. Today marks Cobalt’s official public launch, concluding its beta phase.