GigaStar is a platform that provides YouTube Creators with an intuitive platform to raise capital from Investors who also benefit from gaining exposure to the Creator Economy. Pulse 2.0 interviewed GigaStar CMO Sarah McNabb to learn more about the company.
Background Of The GigaStar Team
When asking McNabb about the background behind the team, she said:
“GigaStar is powered by a dream team of media, blockchain, and product design professionals bringing experience from companies such as Amazon, Expedia, and Robinhood.
GigaStar leadership is comprised of serial entrepreneurs, pedigreed in fintech and YouTube Creator services with a track record of leading multiple successful exits.
My career in financial technology marketing spans over 20 years in securities brokerage, trading software, and agency spaces in Chicago. This is the second company where I’ve worked with our CEO, Hazem Dawani. When he approached me with the GigaStar model in 2022, I thought it was revolutionary. My husband is a full-time podcaster, so the concept of helping Creators thrive is near and dear to my heart.
Creators inspire the entire GigaStar team, and we want to further democratize the Creator Economy to help YouTube Creators finance their ambitions, partner with Investors, and continue doing what they love.”
Formation Of GigaStar
How did the idea for the company come together? McNabb shared:
“The market opportunity was clear as we identified that a new generation of entrepreneurial Creators needs more access to:
- Raising capital to grow
- Innovating fan engagement
- Building an army of promoters
- Leveraging ways to potentially boost the YouTube algorithm
- Developing long-term recurring revenue streams
YouTube Creators deserve access to funding and strategic Investors, just as traditional entrepreneurs do.
Leveraging a strong foundation in financial technology and Creator services, GigaStar Market was built as The Next Gen Crowdfunding Marketplace for Creators & Investors.”
Core Products
What are GigaStar’s core products and features? McNabb explained:
“GigaStar provides YouTube Creators with a streamlined way to raise capital on GigaStar Market, an SEC-registered crowdfunding (RegCF) platform. It is where YouTube Creators can list a percentage of their channel’s potential future revenue in a revenue-share offering.
On this primary market, during a channel drop, Investors aged 18 or older, willing to accept the associated risks of a securities offering, including the risk of loss, can buy Channel Revenue Tokens (or CRTs), which digitally represent a percentage of the Creator’s future YouTube channel revenue.
Creators can monetize their potential future channel revenue while keeping all of their brand and sponsorship deal revenue. Through GigaStar Market, Investors purchase rights to the Creator’s future channel revenue, not ownership in the channel. This means the Creator maintains 100% ownership and control over their channel.
Investors gain access to the fast-growing Creator Economy to share YouTube revenue with Creators through these unique revenue-sharing securities we call CRTs. When the YouTube channel’s revenue grows, Creators and Investors have the potential to earn more, becoming partners in a shared journey.
Smart contracts automatically distribute YouTube revenue to Investors’ digital wallets monthly and GigaStar Portfoliois the platform that provides insights into their portfolio performance, Channel Revenue Tokens purchased, and tracks all YouTube revenue received.
Lastly, GigaStar plans to launch its secondary market platform by the end of 2024.”
Raising Funds On GigaStar Market
What kind of YouTube Creators benefit from raising funds on GigaStar Market? McNabb noted:
“YouTube Creators can use funds raised on GigaStar Market however they need.
Emerging channels may need funding to hire a team, buy equipment, pay off debt, or even buy a house or pay their kid’s tuition. Established YouTube channels may need funds to acquire other channels, launch a product, plan for their exit strategy, donate to charity, or even as a hedge against the risk of potential changes in YouTube revenue.”
Challenges Faced
What challenges have McNabb and the team faced in building the company? McNabb acknowledged:
“A challenge we have encountered in several Creator conversations is that our model has been mistakenly compared to Spotter, Creative Juice, and Jellysmack, which are very different from the GigaStar model. We don’t do loans or licensing of back-catalogs.
To overcome this, we communicate that GigaStar is not a “fast cash” option, which the Creator Economy has been burned by in recent years.
GigaStar also sees this challenge as an opportunity. YouTube Creators seeking a way to convert their debt, pay off debt, or gain back ownership of their channel through a payout to their current debt financing service provider can explore GigaStar Market as a potential solution in which to raise funds for this purpose.”
Learnings Since Launching
What has the company learned since launching? McNabb pointed out:
“One of our business hypotheses starting out was that Fans wanted to invest in YouTube Creators and help them grow their channels. While this was validated in our first listings, we’ve also learned that, of our growing database of Investors, those who may not be familiar with a YouTube channel that lists an offering on GigaStar Market, are often still potentially motivated to participate. Roughly 30% of GigaStar Market’s Investors have invested in multiple channels.”
Customer Success Stories
After asking McNabb about customer success stories, she highlighted:
“GigaStar has a range of case studies – from the very first channel drop, which sold out in 1 hour, to another channel that shared positive results of hiring a team, which was made possible with the funds raised on GigaStar Market.
To read these Creator Stories, visit https://gigastar.io/creator-case-studies.”
Funding
When asking McNabb about the company’s funding, she revealed:
“Since 2022, GigaStar has raised $7.8M in funding to scale its operations and continue work on its secondary market.
GigaStar Market has launched 18 YouTube channel offerings, raising for Creators on the platform over $2.6 million to date with over 16,000 Investor accounts.
To view current channel offerings, visit https://invest.gigastarmarket.io/.”
Total Addressable Market
What total addressable market (TAM) size is the company pursuing? McNabb assessed:
“With the Creator Economy expected to exceed $500 billion in 2024, an innovative funding mechanism for YouTube entrepreneurs is more important than ever.
We want to lower the barrier to entry for individuals and institutions to invest in the Creator Economy. A step that we believe could help push the Creator Economy towards a trillion dollars by 2027.”
Differentiation From The Competition
What differentiates GigaStar from its competition? McNabb affirmed:
“Our seasoned team’s fintech, blockchain, and Creator services backgrounds converge into a uniquely positioned and vibrant marketplace for Creators AND Investors.
GigaStar also helps Creators streamline the setup of their revenue-sharing securities offerings through white-glove service. This includes all onboarding and support, such as setting up an LLC, developing and filing Form C, and working with escrow safety, which is built into the funds distribution process. And GigaStar remains an ongoing resource and partner to its Creators.
YouTube channel revenue, distributed monthly to Investors from YouTube Creators, is automated using blockchain smart contracts facilitated by GigaStar Technologies.
Among its many benefits, leveraging decentralized blockchain technology helps control costs, lowering the barrier to entry for individuals to participate as Investors in the Creator Economy.”
Future Company Goals
What are some of GigaStar’s future company goals? McNabb pointed out:
“As GigaStar continues to scale and improve its existing products, the company plans to launch its secondary market platform by the end of 2024. As a component of our ecosystem, we believe this environment will provide additional market opportunities for both GigaStar Market Creators and Investors.
Several high-impact enhancements are currently in the team’s product pipeline, including enhancements for the user experience on gigastarmarket.io to achieve a more intuitive and streamlined flow for Investors and a Transfer of Funds feature, which will allow Investors to transfer revenue received via ACH to a bank account.”
Getting Started
How would a YouTube Creator who wants to list an offering on GigaStar Market get started? McNabb told me:
“YouTube Creators who meet GigaStar’s thresholds, including earning at least $30K in YouTube AdSense revenue annually, are invited to Apply for a Drop. Onboarding of accepted Creators is typically 10-14 days.
How would someone who wants to invest in YouTube channel offerings on GigaStar Market get started? McNabb concluded:
“Investors aged 18 or older can open an account on GigaStar Market by clicking the “Sign Up” button at https://invest.gigastarmarket.io/offerings.
- Creators and Investors can learn more about GigaStar here.
- Explore Drops and “Sign Up” on GigaStar Market.
- Connect with GigaStar on Social Media here.”
