Creative Juice, a fintech app aimed at content makers, is launching a new $50 million fund, which is expected to help creators to grow their businesses, TechCrunch has learned. Although the investments distribution model might seem like loans, the fund dubbed "Juice Funds" works differently.
Instead of charging interest for the pre-agreed term, Creative Juice signs a contract agreement with each creator on a personal basis. If the creator fulfills the terms of the contract — but even fails to pay off the "kind-of-loan" — it's up to Creative Juice to cover the deficit. It remains unclear though how exactly investments are calculated and under what conditions. TechCrunch reports that one of the terms is scheduling: creators have to stick to a certain upload schedule to be eligible for the investments.
Apparently, this model works as Creative Juice CEO Sima Gandhi told the media that there were no issues with creators not being able to pay the company back so far.
But that might be due to a selective approach in approving investments. For instance, here's the list of creators that received the investments from Creative Juice:
- Nik Shaw of the fan-inspired live-action anime channel Re:Anime (with almost 5,000 subs on Instagram).
- Colin Chee of small-footprint design and architecture channel Never Too Small (with over 2 million subs).
- Betty Van and Jake Harrington of tech entertainment channel Switch and Click (with over 520,000 subs).
- Caleb Phelps of react comedy channel Oompaville and SourBoys Sour candy (with almost 3.5 million subs).
Creative Juice says too many creators are "forced to rely on organic growth or friends and family for investments." The company added:
They lack the support, financing, and financial tools available to other businesses. [...] In addition to capital, Juice Funds provides resources such as business banking and experts to help them optimize their content through partners.
Founded in 2021, Creative Juice has already raised a $15 million Series A round led by Acrew Capital, with participation by Meena Harris, ex-NFL star Larry Fitzgerald, and TikToker Jared Waldrom.