Creator Ventures Raises $45M for Consumer Internet Startups

Caspar Lee and Sasha Kaletsky’s Creator Ventures Launch Second Fund

Early YouTube personality Caspar Lee recently shared a compelling narrative on TikTok regarding the origins of a significant investment.

He recounted how a startup founder initially contacted him via LinkedIn with a proposition concerning Wild, an environmentally conscious deodorant brand. Initially dismissing the message, Lee was subsequently approached by his cousin, Sasha Kaletsky, an investor at Bridgepoint. Kaletsky inquired if Lee and other creators were interested in participating in the seed funding round.

A Successful Exit and Fund Expansion

Approximately five and a half years later, Wild was acquired by Unilever for £233 million, equivalent to roughly $286 million.

This success served as a catalyst for Kaletsky and Lee, leading to the formation of Creator Ventures in 2019. The firm operates as a seed and pre-seed venture capital fund, concentrating on consumer internet businesses.

Creator Ventures is now introducing its second fund, totaling $45 million – a substantial increase from its initial $20 million fund.

Proven Investment Strategy

Creator Ventures has already demonstrated a knack for identifying promising early-stage startups.

ElevenLabs, an AI audio company currently valued at over $3.3 billion, was a key investment from their first fund. Following Unilever’s acquisition of Wild, another portfolio company, Runna, was acquired by the exercise-tracking application, Strava.

The firm has also invested in Beehiiv, a popular newsletter platform, and spearheaded the seed funding round for Praktika, an AI-powered language learning app.

Focus on AI and Emerging Trends

The Creator Ventures Fund II, building on six years of experience, will maintain its focus on consumer-facing companies. However, it will place increased emphasis on opportunities within the field of Artificial Intelligence – a logical progression given the current technological landscape of 2025.

“A significant portion of spending, around a trillion dollars annually, transpires through the iOS and Android app stores,” Kaletsky explained to TechCrunch. “Even a modest share of this being captured by consumer AI applications will generate a considerable number of unicorn companies.”

Beyond AI, Kaletsky is observing the growth of microdrama streaming apps, which have gained considerable traction in the U.S. after initial popularity in Asian markets.

Microdrama Apps and Revenue Growth

“The pricing model of ReelShort is particularly noteworthy,” Kaletsky noted. “Many are surprised to learn they charge $20 per week, which is considerably more expensive than Netflix.”

Data from Appfigures indicates that microdrama apps DramaBox and ReelShort generated $99 million and $152 million, respectively, in in-app purchases within the U.S. this year.

These figures represent a year-over-year growth of 203% and 233% compared to the same period in 2024.

Speculative Investments and Social Dynamics

Creator Ventures is also exploring more unconventional investments, such as Status, an app resembling a social network where users post updates to an audience comprised entirely of AI bots. User content is subject to the ‘approval’ or ‘cancellation’ by these bots.

The company positions itself as “Sims but social media.”

Despite the potentially niche appeal, Creator Ventures reports that Status has already surpassed 1 million global users since its launch earlier in the year.

The Creator-Founder Connection

While not exclusively focused on the creator economy, Creator Ventures recognizes the strong parallels between startup founders and content creators like Lee.

“Many consumer internet founders are discovering that social media is a crucial go-to-market strategy,” Lee stated. “Increasingly, these founders are becoming creators themselves, which is an area I’m eager to engage with, given my background.”

Fund Backers and Future Outlook

Fund II is supported by investors including Level, Cendana, Vintage, Isomer Capital, Sequoia, and others. Kaletsky mentioned that some of these backers had not invested in consumer-focused funds for over a decade.

“I believe this signals a renewed appreciation for the potential of the consumer sector,” Kaletsky commented.

Lee added, “It’s rewarding to be able to invest in ventures that our friends and family can readily experience.”