Hi everybody I am Luke, The business I am starting(CreatorExchange) could be described as a cross between Kickstarter and the stock market for artistic creators. This is a place where creators like musicians, artists, and actors can get funding from individual investors just like buying a stock in a company. So, for example, a new musician can list on this exchange and investors have the opportunity to buy shares of their brand, and as they become more popular the value of the shares goes up. This enables new creators to get started and build their brand and allows individuals to invest in creators they believe in and possibly get a return on their money. Imagine Billie Eilish had the opportunity to list and promote herself on this app when she was just getting started and needed money for her first album. This would have given her a place to raise money and her earliest fans a chance to invest in her future popularity.
This idea solves two problems. The first problem is that aspiring creators need funding to support their creative endeavors and they need it to be as seamless as possible. The second problem is that there is not a clearly laid out and rewarding platform for individuals to invest in creators because they want to support creators and they want to make long-term financial gains off of their investment.
According to Fameflux, a celebrity popularity tracker an investment in her 5 years ago would have gone up on average 50 times. So a 10$ investment into 1 share would be around 500$ and at its peak, it would have been worth near 1000$ and you would have helped an artist on their journey to success. Yes, there are many other ways for a new creator to raise money, but a lot of the ways to gain money take a lot of work. They should be able to focus on their career instead of trying to start a side business, selling merchandise, or whatever it may be. In this way, they would be able to sign up and promote the app/their personal stock and let people pay them. These apps are great and are super helpful, however along with the problem on the side of the creator there is only 1 motivation to donate-you will help the creator.
With my app, you would be helping the creator in the same way and have a chance to get a return on your money. The platform would hopefully be very simple for both the creator and the investor. For the creator, they would be able to sign up, fill in background information/profile, upload some songs, link their bank account so they can receive the funds, and then promote themselves on social media. For the investor, they would download the app, sign up, decide how much they want to invest and in which creator by researching them/listening to their songs and looking at if they have any news coming out soon and then buy the number of shares they can afford. This money would go directly to the creator, they would now own 5 out of the total 10,000 shares at 10$ each and with any events coming up/them becoming more popular the stock would rise and the initial investor would sell his shares for 15$ to someone else who is willing to pay 15$.
There are two different types of people who will use my app. First, off it would be Creators who are young without much money to start up their career/brand. Eventually, we could open up to add creators who are already successful like Eminem, so they could still list and people could make money off of them and how the stock behaves would still be based on them but the money raised would go to charity instead of them. The second type of user will be younger generations, 18-35. Really it could be for whoever wants to use this. Maybe parents that have kids. Friends and family members who want to support creators but they don’t just want to give them money. The main reason I say this will appeal mainly to the younger generations is that they will understand it more because it is a new element similar to how the younger generation accepts/understand cryptocurrency and NFTs. Like other social media apps, the older generations will likely adapt and become users later on.
If you are interested in this, tell any friends who could use it for investing or building funds and we will be releasing our app soon! If you have any feedback, questions, or would like to collaborate please fill out this form and I will reach out to you!
- Benshoof, Thad. Personal Interview, “GOA Startup.” 15 Mar. 2021.
- “What Causes Stock Prices to Change?” Desjardins Online Brokerage. Accessed 18 Apr. 2021.
- Spotify User Growth. Accessed 18 Apr. 2021.