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As Social Media Content Grows, Fanbase Founder Creates New Monetization Opportunity For Creatives

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Mobile users scrolling through TikTok, Instagram… and now Clubhouse… are looking for entertainment.

But when Isaac Hayes III scrolls, he’s thinking of one thing: How can he help these content creators make money?

Hayes, son of singer-songwriter and producer Isaac Hayes, has experience in both the creative side and brand management of the industry as a songwriter-producer. and as manager of his late father’s estate.

Around 2018, he started noticing that although people were creating a lot of content, they were not getting paid financially.

“It reminded me of the music world around 2010-2012, where rappers were releasing free mixtapes… and they weren’t making any money,” Hayes told Hypepotamus. “Then streaming came. Spotify has exploded and Apple Music is here, and now these people can put their content on streaming sites and monetize their mixtapes.

“Black culture contributes so much to social media platforms. We really help increase the valuation of these platforms, ”added Hayes, although often black content creators are not directly compensated for their contributions to the platform.

He also recognized another important part of social media culture: the younger generations have a very different relationship with online communities and they want to be in digital spaces where they are surrounded by their peers.

“Centennials (Generation Z) are very transactional, they give and they understand in-app purchases.”

This led to the launch of the Atlanta-based company Fanbase, a subscription-based social network focused on monetization opportunities through genuine user engagement.

The content is delivered to a user’s entire audience, without having to compete with an advertising-based algorithmic model that is seen on older platforms like Facebook or Instagram.

The platform supports both short and long content, whether it’s short films, recipe guides, or music. Creators can upload photos, videos, and live broadcasts, and fans can subscribe to each creator’s channel for $ 3.99 per month.

Hayes told Hypepotamus that the app will be available for Android soon. Audio rooms and other chat features are expected to roll out in the near future.

THE EQUITY CROWDFUNDING DECISION

Since late 2020, Fanbase has raised more than $ 2.3 million, well above its original goal of $ 1 million.

It came from Start the engine, a platform where founders can turn to the general public for crowdfunding opportunities. Platforms like StartEngine help those who are not eligible for traditional SEC angel investor regulations, but still want to invest in emerging startups.

To date, Fanbase has over 4,000 investors on the site.

“Coming from the music industry, I always say that getting venture capital money is like signing with a record company. Usually they take a bigger slice of the pie… but doing equity crowdfunding is like going independent, ”said Hayes.

For Hayes and Fanbase, starting with equity crowdfunding was yet another way to help grow black wealth. “There is room on the hats table for young creatives who say: would I rather make money with TikTok or own the next TikTok?

The decision to use equity crowdfunding instead of a more traditional venture capital route has also helped Hayes retain his decision-making power while growing his team, which currently numbers 14 people.

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