Alchemy has launched a $100 million fund to give creators upfront payments based on projected future earnings. Instead of waiting on brands to pay or relying on inconsistent AdSense revenue, creators can now secure an advance and get paid immediately.

The creator economy is growing. U.S. influencer marketing spending is set to surpass $10 billion this year. However, for years, creators have struggled with their income, delayed payments, and inconsistent brand deals. This makes it difficult for creators to have consistent income. Alchemy is looking to tackle this challenge. 

According to the platform, the $100 million fund is designed to give creators more financial control. Isaac Wagschal, Founder of Alchemy said, "Creators should have financial access that matches the speed of the digital world."

How Alchemy’s funding model works

Alchemy’s model is different from the traditional financing options. Instead of offering loans or requiring fixed repayment timelines, the company pre-purchases a portion of a creator’s projected earnings. According to Lindsey Gamble, it looks at their past six months of income and estimates what they will make over the next six months. Creators then receive an upfront payment, with an average flat fee of 1.15. 

For instance, if a creator who earns $10,000 per month applies for an advance, Alchemy will review their past six months of earnings and estimate they’ll make $60,000 in the next six months. The company then buys a portion of that projected revenue upfront, transferring funds to the creator immediately.

The creator is then allowed to repay the advance as they earn, but if earnings take longer to materialize, Alchemy takes the risk. The company also takes the los if a creator earns less than expected.

Many funding platforms only offer advances on secured brand contracts, so creators must already have signed deals in place. Alchemy looks at overall earnings, making it accessible even to those without locked-in sponsorships.

Micro and mid-tier creators stand to benefit the most

According to Lindsey Gamble, the company isn’t targeting the mega influencers who already have brand partnerships rolling in. Instead, its focus is on micro and mid-tier creators like Instagram, TikTok, and YouTube influencers. 

By offering upfront cash, Alchemy claims it’s giving influencers financial flexibility to take on bigger collaborations, upgrade their content, and focus on growth rather than struggling for the next paid deal. Alchemy has already paid out millions to creators since January. 

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