A Reckoning for the Creator Economy and Doctors' Bedside Manner Via AI
What We're Reading and Talking About on Slack This Week
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By Forerunner
What We’re Talking About on Slack:
A reckoning for creator economy startups, detailed by The Information. At least 11 have been acquired and at least seven have shut down since the beginning of 2022, with many others trying to find buyers. The creators these companies were catering to just weren’t making enough money, especially amid a downturn in advertising. Only 12% of full-time creators make more than $50,000 per year, while 46% make less than $1,000, says a 2022 report from Linktree. “Most of these startups were solving problems that were not relevant to most creators. Most of these tools didn’t make you famous…and didn’t make [creators] more money. Those are the two principal things that everyone is seeking.” Related: our Managing Director Brian O’Malley recently wrote about Digital Franchises, a new model that supports solopreneurship with hedged risk through a centralized platform for structure and support. In his words: “The creator economy should be viewed like any other SMB market, because the lions share of creators are just that: small businesses. VCs have been infatuated with the creator space, but really, there are a ton of entrepreneurs or potential entrepreneurs who need their help right in front of them.”
You need $2.2 million to be rich, so says a new Charles Schwab survey. Despite that, the majority of Gen Z and Millennials (60%) define wealth more comparatively, saying that affording a similar lifestyle as their friends makes them feel wealthy. For boomers, just over 30% said the same. “Whether it's the fear of missing out or the desire to keep up, there are many factors that can make you feel pressured to spend money on things that may not have long-term value.”
Bedside manner, via AI. Doctors are turning to ChatGPT to help them write scripts to talk to patients empathetically. Doctors sometimes have a reputation of using complex medical language that people don’t understand, or being too focused on the analytical side of the issue vs. choosing the most empathetic words. But 85% of patients say a doctor’s compassion is more important than wait times or cost in healthcare, and 75% of patients said they’ve had doctors who were not compassionate. In using ChatGPT to craft empathetic messages, many physicians have been impressed: “I wish I would have had this when I was in training. I have never seen or had a coach like this.”
New research from the United Nations finds gender inequality hasn’t made material progress over the last decade, meaning the UN's goal of gender parity by 2030 is highly unlikely. “Almost nine out of 10 men and women hold fundamental biases against women and the share of people with at least one bias has barely changed over the decade.” Some of the biases include: nearly 50% believe that men make better political leaders and business executives. The survey also brought to light an economic-education gap: The average global income gap is almost 40% even in the 57 countries where adult women are more educated than men.
Another surprising finding: People in America are dying at higher rates than they are in other similar high-income countries. And while the U.S. had more COVID-related deaths in 2021, that doesn’t explain the increase. A few of the driving factors could be: prevalence of obesity and cardiovascular disease, homicides (particularly from firearms), and drug overdoses. “Racial and economic inequalities, which combined with a weaker social security net and lack of health care access for all may help explain larger health and death disparities compared to European countries.”
Older generations are living large, while Gen Z and Millennials are cutting back. Data from Bank of America shows that spending has increased by 5.3% among those born 1928-1945 (“Traditionalists”), and 2.2% for Boomers, but spending decreased about 1.5% for the younger generations, both Millennials and Gen Z. Maybe it’s because older Americans received an 8.7% cost-of-living Social Security adjustment, while younger people have more debt and are navigating higher costs of living (rents, mortgages, interest rates). A related trend: some thirty- and forty-somethings are even resorting to building tiny homes in their parents’ backyards.
Even noise is a health threat. Whether it’s a jet plane roaring above, cars honking outside, or the incessant barking of the neighbor’s dog, growing research is finding that disruptive sounds increase the risk of hypertension, stroke, and heart attacks. “According to the World Health Organization, average road traffic noise above 53 decibels (dB) or average aircraft noise exposure above about 45 dB are associated with adverse health effects.” Over a third of Americans live in areas exposed to at least 45 dB—with 9 million exposed to noise levels between 60 and 70 dB and 3 million above 70 dB. “Those who lived in areas with high levels of transportation noise were more likely to have highly activated amygdalas, arterial inflammation and—within five years—major cardiac events.”
America isn’t ready for EVs. The Wall Street Journal outlines the challenges the U.S. faces to make road transportation net-zero by 2050, including the need for EV makers to provide an accurate range of its vehicles to limit “range anxiety,” address software glitches, make charging stations more user-friendly (you often have to download an app first), and vastly improve the charging infrastructure. The Biden administration is planning on adding charging stations every 50 miles on U.S. highways, even though some state governments say that’s unrealistic. If the country can achieve this, there could be adjacent economic opportunities: “private enterprises are realizing that drivers who have to stop frequently to recharge could be lucrative in other ways — for example by spending money on food while they wait.”
YouTube is making it easier for creators to make money. The social media platform lowered the eligibility requirements to gain access to its monetization program. For instance, instead of 1,000 subscribers, creators will only need 500 subscribers. For creators already in the program who have more than 20,000 subscribers, YouTube has expanded its Shopping affiliate pilot to more creators in the U.S. to tag products in videos and earn commissions.
Apparently, people are more likely to be deceitful and dishonest when communicating on a laptop vs. on a cellphone, according to a new study. The researchers discovered that people hold associations for devices — essentially, we associate the phone with our friends and family, while we think of work while using a laptop. It’s not exactly that the device makes people deceptive per se, but that a laptop usually signals “business,” which might create a ‘get ahead at any cost’ mentality to achieve success.
Portfolio Highlights:
Former Spotify executive Courtney Holt joins Real as President.
Vogue Business names Prose and Curology as brands that are especially appealing to investors due to their customer loyalty, personalization, and strong market positioning.
Tom Hale, CEO of Oura, made an appearance on CNBC to promote the company’s new social feature, Circles. TechCrunch and FittInsider also covered the launch.
The Business of Fashion discusses athletes as beauty ambassadors with a nod to A-Frame Brands.
CEO of Attabotics, Scott Gravelle, recounts his journey from healthcare to warehouse robotics with Freight Waves.
Forerunner Highlights:
Our Managing Director Brian O’Malley joined Bloomberg TV to talk about the state of VC, responsible & scrappy growth, and where we see opportunities today.
Our Managing Director Eurie Kim is speaking at Collision Conference later this month about the outlook for the VC market in 2023.
Work at a Portfolio Company:
Senior Director, Direct Response | Curology: Curology is creating the next generation of skincare through customized treatment plans and formulas with powerful prescription ingredients for acne and anti-aging. This role will develop and lead a comprehensive customer acquisition strategy, aligned with the company's overall business goals and growth targets.
Senior Copy Manager | Prose: Prose creates custom hair care that’s inclusive to all hair types, needs and preferences. This role will own the Prose brand voice and ensure it is unique, engaging, and consistent across all departments, categories, and consumer-facing channels.
Product Manager | Catch: Catch is on a mission to unlock more rewarding relationships between merchants and their customers, starting with changing the way we pay for things online. This role will own the consumer product roadmap and strategy, drive customer growth, and build engaging shopping experiences.
There are ~486 other openings on our jobs site. Check ‘em out.
Curious how you’re thinking of the framework shift of the creator economy for DTC investing if it’s now seen as a primarily B2B model? Does the new labeling change anything?