StreamElements Secures $100M Funding | 1.1M+ Creators

The Expanding Realm of the Creator Economy and StreamElements' Growth

Today’s internet landscape is fundamentally shaped by video content, with creators serving as the driving force behind what is produced and consumed. A startup dedicated to empowering these creators with tools for production and monetization has recently secured a substantial funding round, highlighting the significant growth and profitability of the creator economy.

StreamElements Secures $100 Million in Funding

StreamElements, a provider of production and analytics solutions for livestreamers and video-on-demand creators on platforms like Twitch, YouTube, and Facebook, has announced a $100 million funding injection. These funds will be allocated to further development of its platform’s tools, expansion into on-demand video services alongside its established livestreaming business, and targeted marketing efforts to attract more creators. Currently, the platform boasts a user base of 1.1 million individuals.

Co-founder Gil Hirsch stated the company’s ambition to establish a presence wherever creators operate. This includes expanding to emerging platforms like Trovo, and innovating within the video-on-demand space by introducing unique, audience-focused technologies for YouTube videos.

Navigating a Competitive Landscape

StreamElements operates within a highly competitive creator economy, facing competition from the video platforms themselves, which are increasingly developing their own production and monetization features. Consequently, the pursuit of top talent remains a significant challenge.

Executive Restructuring for Enhanced Focus

Alongside the funding announcement, StreamElements is implementing key executive changes to refine its business strategy. Co-founder Gil Hirsch will assume the role of CEO, while co-founder Doron Nir will transition to President. Yuval Tal will serve as COO, Jason Krebs as CBO, and Udi Hoffmann as CFO, completing the leadership team. (The remaining co-founders are Or Perry and Reem Sherman.)

Investment Details and Backers

SoftBank Vision Fund 2 spearheaded this funding round, with participation from new investors PayPal Ventures and MoreTech, alongside existing backers State of Mind Ventures, Pitango, Menorah, and Mivtach Shamir.

Growth Fueled by Increased Video Consumption

While StreamElements has not disclosed its valuation, this funding round follows a period of substantial growth for the company. This growth coincides with a surge in user-generated video consumption, driven by the popularity of platforms like TikTok, Instagram, YouTube (now hosting 40 million gaming channels), and Twitch (which surpassed 2 billion hours of watched video in January 2021). The rise of COVID-19 and associated restrictions on activities further propelled video consumption as a source of entertainment and connection.

Hirsch emphasized the pandemic’s impact, noting an increase in both content consumption and creation. Monthly users grew from a few hundred thousand to over a million within a year. Brands also shifted marketing budgets towards digital campaigns, with livestreamers becoming increasingly attractive promotional partners. Consequently, StreamElements is experiencing more frequent inquiries from major brands regarding influencer-driven sponsorship activations.

Platform Usage and Creator Adoption

The company reported a 233% growth in platform usage, with particularly strong engagement from leading content creators. Over 60% of creators with 20,000 or more views and followers across various platforms utilize the StreamElements dashboard.

Expanding into Video-on-Demand

StreamElements is now prioritizing video-on-demand, building upon existing services to capitalize on what it perceives as a significant untapped opportunity, particularly when contrasted with the livestreaming market.

Hirsch highlighted YouTube’s substantial gaming presence, with over 40 million active gaming channels. He noted that much of this content consists of on-demand videos lacking the real-time engagement features that have fueled the success of livestreaming. StreamElements aims to integrate dynamic interactive features into on-demand videos to foster stronger communities around this type of content.

Revenue Model and Creator Focus

Currently, StreamElements’ creator tools are entirely free to use. Revenue is primarily generated through brand partnerships, offering influencer-driven sponsorship activations powered by proprietary technology. This technology provides unparalleled measurement capabilities for brands, making it a key differentiator. The company is focused on attracting more high-volume creators to its platform.

The majority of StreamElements’ creators are currently located in the U.S., Europe, and Brazil, with plans to expand into additional international markets, aligning with SoftBank’s preference for mass market opportunities.

SoftBank’s Perspective on the Creator Economy

Nahoko Hoshino, a senior investor at SoftBank Investment Advisers, stated, “As online entertainment evolves into a more immersive experience, the demand for authentic creator-driven content has grown exponentially. StreamElements empowers creators to deliver enriched experiences for audiences while monetizing content across leading social video platforms. This fosters a dynamic new digital market between creators and fans, and we are excited to support the company in building a wider global community.”

Future Outlook and Strategic Direction

Looking ahead, the future development of StreamElements remains to be seen, including potential investment in its own streaming platform or a possible acquisition by a major industry player.

Hirsch emphasized the importance of platform ubiquity over exclusivity, believing that transcendent creators—those whose personal brands surpass any single platform—represent the future. He cited Oprah Winfrey as an example, whose success spans multiple mediums due to the strength of her personal brand. Achieving this transcendence requires creators to prioritize their own brand over platform-specific contracts and focus on maximizing reach and frequency.