Bridging Silicon Valley innovation with Wall Street finance, New York-based startup OverSubscribe is refining the concept of creator funding. Co-founded by CEO Peter Yang and Jae Kim, this startup is introducing a regulated investment model to the creator economy. It enables influencers across platforms to raise funds in exchange for a share of future revenue. With products tailored for emerging and established creators, OverSubscribe is poised for explosive growth. Peter, leveraging his experience from Goldman Sachs and venture capital, is leading a platform allowing content creators to tap into a new source of capital: their fans.

A New Model of Crowdfunding: Bridging Finance and Fandom

Peter’s background in finance and tech informs OverSubscribe’s approach. His 15-year experience in Silicon Valley includes stints at Goldman Sachs, Citigroup, and Emergence Capital Partners, a venture capital firm that invested in tech giants like Salesforce and Zoom. “I worked with big B2B software companies in Equity Research at Goldman Sachs and Citigroup, where I got to know the tech industry well.” 

The knowledge he collected propelled him to launch OverSubscribe with his partner and help creators leverage one of their unique strengths – strong relationships with their audience.

OverSubscribe’s essential mission is clear: the platform enables creators to secure upfront funding in exchange for a share of future revenue for a specific number of years chosen by the creators raising money. “We help creators accelerate their growth, reach the next level with their content and business, and reach their full potential by helping them raise money to grow,” Peter explains.

The company’s model differs from traditional crowdfunding platforms. Fans can invest as little as $50 and potentially share in the creator’s financial success. Peter notes, “The creator can then choose to share a percentage of the money they make for a certain number of years back to the fans who support them.”

OverSubscribe’s approach resonates with audiences. A survey commissioned by the company found that 62% of YouTube viewers expressed interest in supporting their favorite creators through this investment model, with 80% of the most engaged viewers saying they were “very interested” in supporting their favorite creators this way. 

Peter believes this reflects a growing understanding of the business side of content creation. “Audiences have come to realize [creators are] not just doing this for fun,” he says. “They’ve come to understand that there’s a whole business side to this as well and are more than willing to support their favorite creators to allow the creator to provide them with more of what they love, as long as they can also share in the financial success that may result.”

OverSubscribe’s Creator-Centric Approach to Funding

Peter outlines a nuanced process for creators seeking to raise funds through the platform. The company’s approach is designed to accommodate creators on any platform and at any stage of growth, from TikTokers or Substack newsletter writers with 25,000 followers to YouTubers or podcasters with over a million subscribers.

“We don’t just work with the high-end creators on YouTube,” Peter explains. “There are some other firms out there where they invest in creators and invest in big YouTubers. We’re very different because we help creators of all sizes and across platforms, and the funding comes from maybe the friendliest investor for a creator: their fans.” He breaks down how the platform works.

Onboarding and Audience Interest Poll

OverSubscribe’s onboarding process begins with a conversation to understand the creator’s journey and ambitions. Peter emphasizes the importance of this step: “It helps us to see where they’re going and what their ambitions are and see if that overlaps with how we can help [them] through our platform.”

A key innovation in OverSubscribe’s approach is the “audience interest poll,” an additional step before the full fundraising campaign. This feature was developed in response to creator concerns about maintaining trust with their audiences.

“We heard from a lot of creators who we thought would do very well on our platform, who we thought would be able to raise a decent amount of money,” Peter recalls. “They said, ‘I have a very special relationship with my audience. I have to be careful in terms of the financial things I bring to my audience because I don’t want to break that trust with them.'”

The audience interest poll allows creators to gauge their followers’ interest without discussing specific financial terms or fundraising goals. Peter describes the process: “All the creator says is, ‘I’m looking to do these things that I think you’re going to love and would love both your support and to share my financial success with you.’ There’s no dollar amount discussed or  potential investment terms

This approach mitigates risk for creators, as Peter notes, “The results are private. So there’s no progress bar. There’s no counter. So the only people who see those results are the creator and our team, and the creator can make a decision to move forward to the full fundraise based on the response.”

Flexible Fundraising Model

If the interest poll indicates sufficient support, creators can proceed to a full fundraising campaign. OverSubscribe’s platform then operates similarly to crowdfunding sites, but with a unique twist: fans invest in exchange for a share of the creator’s future revenue for a specific number of years. The OverSubscribe platform is unique in that creators have complete control over the terms of the investment fundraising, choosing their own terms for the revenue share and the number of years the returns are shared back with the fans who invest. 

Peter elaborates on the platform’s creator-friendly fee structure: “No fees are coming out of the creator’s pocket. We charge and make money because there is a transaction fee of 9.4% for the full amount of the fundraising.”

Importantly, he adds that these fees are only collected if the fundraising goal is met. “We only receive that if the creator can raise the full amount they’re looking to raise,” Peter states. “Everyone’s incentives are kind of aligned there. We’re doing all we can to help the creator raise the full amount because we don’t get paid otherwise.”

This model allows creators to access capital for growth initiatives, such as hiring editors, producing new content formats, launching new products, or organizing live events while sharing potential financial success with their most supportive fans.

The Multifaceted Role of Modern Content Creators

Peter identifies a key challenge in developing the company’s offerings: creators’ unfamiliarity with outside funding models. “The biggest thing here probably is that creators just aren’t used to thinking about having outside funding like this,” the entrepreneur explains.

He compares creators to startups, noting that both can benefit from external capital to address challenges and seize opportunities. Peter highlights the multifaceted nature of content creation, stating, “For an individual creator, we broke it down into 19 different jobs.” These roles range from on-screen talent to editing, graphic design, and negotiating brand deals.

OverSubscribe’s platform aims to help creators focus on their core strengths by providing access to capital for hiring professionals like editors. “We’ve seen a lot of demand from up-and-coming creators to raise maybe five, ten, $20,000 to hire an editor to free up that 15 to 20 hours a week they’re spending editing their YouTube videos,” Peter reveals.

The company’s approach also addresses the limitations of traditional funding sources for creators. Peter points out, “You can’t walk into Chase Bank and get a small business loan as a creator. We talked with creators with millions of YouTube subscribers who couldn’t do that.”

OverSubscribe’s solution involves connecting creators directly with their audience for investment. “The investors for a creator are their audience. Maybe the friendliest investors they have,” Peter says. This model allows creators to choose friendlier terms offset by perks to investors.

Notably, the CEO emphasizes the regulatory compliance of OverSubscribe’s platform: “We’re fully regulated by the SEC and fully legal, and we’re not crypto. We’re the opposite. This is an actual investment in the creator’s business.”

Sustainability and Mentorship

OverSubscribe’s strategy for sustainability in the volatile creator market extends beyond its funding platform. “We feel if we help look out for the needs of creators, the good things will come to us through that,” Peter emphasizes the company’s creator-centric philosophy.

A vital component of this approach is OverSubscribe’s mentorship network. Peter explains, “We put a lot of work into building a network of creator mentors. These are  some top-tier folks from the creator economy.” This network includes YouTube experts, brand deal advisors who’ve worked with top influencers, and strategists who guide creators’ long-term growth.

The mentorship program addresses a crucial need identified through creator feedback. “What would also really help… is to get guidance and advice from people at the top of this creator world, who could help me to get to where they are,” Peter recalls creators saying.

By combining financial support with expert guidance, OverSubscribe plans to foster sustainable growth for creators while building a robust business model. This holistic approach, Peter adds, aligns with the company’s mission to help creators “reach their full potential, wherever they’re starting from.”

OverSubscribe’s Future Vision

Diversification of Revenue Streams

Peter notes a significant shift in how larger creators approach monetization: “One big thing we’re seeing in particular with larger creators is they’re thinking beyond just the money they can make on a platform.” The trend involves creators seeking to control their destinies by:

1. Owning their audience relationships: Peter observes increased demand for “community platforms or kind of premium community and content platforms” outside major social media sites.
2. Developing products: Creators explore physical and digital products tailored to their audiences.

Tiered Approach

To address the diverse needs of creators at different stages, OverSubscribe offers two distinct products:

1. OverSubscribe Accelerate: Designed for up-and-coming creators with under a million followers, this product includes mentorship and revenue sharing across all creator income streams.
2. OverSubscribe Amplify: This product is tailored for established creators with over a million followers on at least one platform. It focuses on funding specific projects or products, with revenue sharing limited to only those ventures.

Peter explains the rationale behind Amplify: “We don’t think these well-established creators should be sharing across all of their revenue because they are the ones who’ve done all the work to build their brand and these steady monetization streams for themselves.”

Long-Term Goals and Market Potential

OverSubscribe’s immediate focus is on serving its current creator base and managing growing interest. “We’re seeing a ton of interest right now,” says Peter. We’re reaching out to creators, and we’re also starting to hear from more.”

The company sees substantial growth potential within the creator economy, which Peter notes is “supposed to be a $500 billion market within a few years.” OverSubscribe’s ability to work with creators across platforms and of various sizes positions it to capitalize on this market expansion.

Future Possibilities

While concentrating on its core offering, OverSubscribe is considering potential expansions:

1. Back-end services: Supporting creators in building broader businesses or launching products post-funding.
2. Creator network synergies: Exploring opportunities to connect funded creators and provide additional services.

Peter states that these ideas are on the roadmap but not immediate priorities: “Those are all things we can talk about when the time comes.”

Inclusive Approach

Peter concludes by underlining OverSubscribe’s commitment to inclusivity: “This isn’t just for big creators out there. This isn’t just for the folks with millions of subscribers on YouTube. We can work with any creator.” He invites creators of all sizes to explore how OverSubscribe might support their growth, underscoring the company’s mission to help creators reach their full potential without financial constraints impeding their progress.