Dmitry Shapiro and Sean Thielen, co-founders of GoMeta, had a dream like many others to cash in on the booming creator economy. Two years ago, they pivoted their startup to a new product called Koji, a simple tool that allows influencers to link to their online tip jars, merchandise, and services in their social media bios. With only dozens of startups offering similar products, Shapiro and Thielen raised a staggering $20 million for their company.
Fast forward to today, and they can no longer fuel their once-optimistic vision in the creator economy. Their humble link-in-bio service, Koji, which took a cut of transactions that occurred through its product, never amounted to the significant market the co-founders once imagined. The reality is that the public target market for Koji, comprising the masses of creators with smaller followings than the superstars such as MrBeast and Emma Chamberlain, make minimal income which is insufficient for the startup and other players in the niche to thrive. Unfavorable factors such as the recent downturn in advertising have contributed to their current situation.
Shapiro and Thielen have decided to pivot once again, signaling the end of their involvement with the creator economy. They are currently seeking a suitor to acquire Koji as they shift their focus on a new AI product they are developing called YouAI. The duo’s intentions represent a reckoning for the creator economy startups that increasingly struggle to monetize creators with smaller followings in the current business environment.
Although the duo will be diverting their attention towards YouAI, their situation indicates that it is increasingly difficult to monetize employment classes whose influence is limited. It is probable that the time has come for creators to revise the way they monetize their business models since they are rapidly becoming a saturated market. Many businesses that offer similar solutions are competing for a piece of a small pie, leaving many founders disillusioned and with the option to pivot.
