Investor’s FAQ

Some commonly asked questions from Creators and Investor friends:

Early-stage growth potential. Creators are high-growth, and risky opportunities, where the injection of VC-style funding can catalyze growth across multiple ventures and revenue streams. Attention can amplify products fast. Viral in nature.

Software-like Scale. Creator-driven businesses are scaling more than we thought.

Scalable, Risk-Tolerant Investments. PE typically focuses on stable, cash-flow businesses, or at least later-stage companies with predictable returns. The industry & identity of “Creator” is evolving and carries the type of growth risk only VCs can tolerate.
Holistic and Long-Term Value Creation. The bet is on the founder with flexibility that some subsidiaries will be great and some will fail. Opposite from PE more singular focus on profitability and operational control.
High-Potential Exits and Emerging Markets. Basically only MrBeast is a current example of a clean exit.

Stage-agnostic deep dive into Creator Sourcing here.
In the talent management industry, generally speaking, it’s an inbound sourcing focus.
I’ve outlined how to identify which “stage” of Creator you’re looking for.
Generally speaking: This is your Pitchbook. Emails are around. Mostly cold outbound.

To get the deal done, the following documents will probably be shared throughout the transaction:

From the Creator:

Creator Deck [Example] (This example is taken almost completely from YC’s.)

Creator P&L [Example]

From the Investor:

(Depending on Agreed Deal Terms w/Founder)

MCC. (HoldCo-focused Investment Agreement); Priced Deal

Includes:

Multi-Company Agreement:Includes agreed-upon Assets (Content, Founded Companies, etc.)

Operating Agreement

Content Rights and IP Agreement

Optional: Rev-share (suggested use for management-based investors)

Liquidation Agreement

Depends on if it is equity-based (investor) vs. equity + revenue vs. revenue:

All can negotiate

Type	What to Wiggle	Probable Person
Equity	- Valuation of Company - Equity Allocation Amount - Vesting Schedule - ROFR timing - Business Carve-Outs (esp for existing, non-creator related businesses)	Investor
Revenue + Equity	^ and v	Investor Private Equity Talent Management
Revenue	- Term of Representation - Commission % - “Packaging Fee” - Contracts Covered After Term is Over - Conflict of Interest Clause - Termination Clause - Governing Law - Per Revenue Stream (ex: Rev for only Youtube)	Talent Management