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AI and social commerce startups dominate 2025 funding with $2B raised as creator economy surges amid AI integration and live shopping growth

The creator economy is experiencing a surge in investment, fueled by advancements in artificial intelligence and the rapid growth of social commerce. In 2025, 13 startups in this space collectively raised approximately $2 billion in funding from venture capital and private equity investors. Eight AI-driven startups focused on automating content creation each secured at least $50 million in funding this year, accounting for a total of $1.2 billion. London-based Synthesia, a generative AI video platform, closed an $180 million funding round in January. ElevenLabs, a leader in text-to-speech technology, raised $180 million in a Series C round. Other notable AI players like Moonvalley, Krea, and Higgsfield also announced significant funding, reflecting strong investor confidence in AI-powered content tools. Despite the momentum, AI’s role in the creator economy remains controversial. Startups offering AI avatars, synthetic voices, and automated video generation raise concerns among creators who fear displacement. While influencer marketing remains the primary revenue stream for many creators, the industry has yet to establish clear guidelines on the appropriate use of AI in content. Top creators are not waiting passively. YouTuber MrBeast and his team reportedly sought to raise $200 million at a $5 billion valuation earlier this year, according to investor materials reviewed by Business Insider. The team has not commented on the fundraising efforts. Beyond AI, social commerce platforms are also attracting massive investments. Whatnot, a live-stream shopping platform specializing in fashion, collectibles like Pokémon cards, and Labubus, raised $490 million across two later-stage funding rounds this year. The company is now valued at $11.5 billion. ShopMy, an affiliate marketing platform helping creators monetize content, raised $147.5 million in 2025, strengthening its position in the influencer marketing ecosystem. The broader social commerce market in the U.S. is projected to surpass $100 billion in sales next year, according to EMARKETER, a sister company of Business Insider. The growth is being driven by platforms like TikTok Shop, which have redefined how consumers discover and purchase products. This year’s funding wave follows a similar trend in 2024, when startups such as Captions, Flip, and OpusClip attracted major investments. Several companies, including ElevenLabs and ShopMy, have now raised funds for two consecutive years, signaling sustained investor interest. Business Insider analyzed 2025 fundraising data from PitchBook and other industry sources to identify the 13 startups that raised $50 million or more. The total funding across these companies exceeded $1.9 billion. The list includes companies whose products directly impact how creators produce content, build audiences, and generate revenue. The data highlights a clear shift: the creator economy is no longer just about individual talent—it’s becoming a high-stakes tech and commerce ecosystem powered by AI and real-time engagement.

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