In a fusion of fintech and the creator economy, Chicago-based GigaStar is redefining how YouTube creators access capital. Co-founded by Hazem Dawani, a seasoned fintech entrepreneur, this innovative platform leverages blockchain technology to offer a unique crowdfunding solution. GigaStar enables creators to raise funds by sharing future revenue with investors while maintaining complete control of their channels and intellectual property (IP). With $2.5 million already raised for creators and over $150,000 distributed to investors, GigaStar is quickly gaining traction in the digital content marketplace. Hazem and his team are at the forefront of a new era in creator financing that treats content creators as the entrepreneurs they indeed are.
"Creators are essentially entrepreneurs who build their companies as their channels and build their businesses," he explains. "They tend to lack sources and options to fund their enterprises and ambitions." Hazem brings a wealth of experience from the fintech world to this venture, conceived by his colleague and co-founder Mohammed Asfour, who has over 15 years of experience in the YouTube space.
GigaStar: Empowering Creators Through Innovative Crowdfunding
GigaStar’s core mission is "to empower creators with access to crowdfunding and provide investors with unique revenue-sharing assets." Hazem emphasizes the company’s unique approach: "We found a solution regulated by the U.S. financial industry that allows YouTube creators to leverage their thousands of subscribers and followers through crowdfunding."
What distinguishes GigaStar is its creator-centric model. "Creators do not lose control of their YouTube channel [or] give up IP," Hazem states. "It allows them to get the funding they need to build their businesses." He believes this regulated approach enables creators to maintain creative freedom while accessing necessary capital.
Since its launch, GigaStar has demonstrated significant traction. "We've already raised over $2.5 million for creators on the platform," Hazem reports. We have already distributed over $150,000 of YouTube revenue to the investors. We have over 16,000 investor accounts on the platform."
The company's innovative approach simplifies the complex process of regulated fundraising for creators. Hazem explains, "We ensure that it's an easy process for the creators, even though they are essentially issuing revenue-sharing securities on the platform to the investors."
GigaStar's tech leverages blockchain to manage revenue distribution at scale. "We provide the investors with a guaranteed way to receive monthly YouTube revenue and facilitate the whole process for both [them] and the creators," Hazem states.
The platform has already produced notable success stories. One example is The Shluv Family, an entertainment channel that raised over $50,000 to hire an editor and increase production. As a result, according to Hazem, they "substantially increased the engagement, viewership, and revenue of the channel."
In another case, ClearValue Tax raised $1 million from over 1,100 investors in a matter of days by offering 20% of their future YouTube revenue. Hazem sees this as evidence of "how much demand there is, how much desire there is from the fans and investors to be part of the creator economy."
Technology: The Backbone of GigaStar's Innovation
At the core of GigaStar's platform lies a sophisticated technological infrastructure that enables seamless crowdfunding and revenue distribution. Hazem emphasizes the critical role of technology in handling high-volume investor traffic and simplifying the investment process.
"Technology is a big part of what we do," Hazem states. "Conducting a crowdfunding offering can be intense when thousands of investors come to your platform." To address this, GigaStar has developed robust systems that can handle significant traffic while maintaining an easy-to-use interface for investors.
For creators, the company has automated many onboarding functions, streamlining the listing process on the platform while still providing creators with a white-glove concierge-style onboarding experience. This includes contract production, offering page creation, and marketing guidance.
A key technological innovation is GigaStar's use of blockchain for revenue distribution. Hazem explains, "We spend a lot of time on the blockchain... to distribute the YouTube revenue when it comes in from YouTube to thousands of investors, smart contracts are leveraged." This system allows for efficient, scalable revenue distribution.
The platform also features GigaStar Portfolio, a comprehensive tool for investors to track their investments and monitor channel performance. "These features bring investors back time and again to invest in more creators and channels," Hazem notes.
GigaStar is exploring the potential of AI to enhance its services. The CEO anticipates that as the platform scales to "millions of investors and thousands of creators," AI could play a crucial role in identifying patterns and adapting to various needs.
Creator-Brand Relationships in the Digital Age
While GigaStar primarily focuses on empowering creators through crowdfunding, Hazem acknowledges the platform's indirect impact on creator-brand collaborations. "We don't stand between the creators and the brands they work with," he explains. "Creators who work with us keep all brand and sponsorship revenue and only offer a portion of their channel's future YouTube AdSense revenue." The Chicago-based entrepreneur notes that by providing financial support, GigaStar may indirectly enable creators to dedicate more time to brand partnerships and sponsorships.
Hazem emphasizes the shifting media space and its implications for brand engagement. "People are turning to YouTube instead of more traditional TV these days," he observes. "For brands to reach their audiences, especially younger audiences, they have to look at content creators as a way to access them."
According to Hazem, the power of influencers in this new ecosystem is significant. "It's amazing to see the amount of dedication people have to these creators," he says. This loyalty translates into tangible results for brands. As Hazem affirms, "Influencers can and do greatly influence their audiences to adjust certain behavior or buy certain products."
Tokenizing Talent: The Next Frontier in Creator Finance
Hazem sees significant shifts in the creator economy. He notes the emergence of various funding solutions for creators. Still, the industry veteran reiterates GigaStar's unique approach: "We're trying to solve a funding solution that aligns the creators' careers 100% with their investors, on a long-term vision."
A major trend Hazem identifies is the securitization and tokenization of YouTube revenue. He explains its potential, "YouTube received over $30 billion in ad revenue last year. And they give 50% of that to the content creators." Hazem advises creators to adopt an entrepreneurial mindset: "I would encourage creators to think as entrepreneurs and business-minded people.” He notes a growing trend of creators viewing their channels as businesses, developing holistic strategies encompassing brand deals, product creation, and multi-platform presence.
For marketers, Hazem hints at the power of influencer partnerships. "It's fascinating to see how much strength messages by influencers have," he observes, highlighting the effectiveness of influencer-driven campaigns.
As for GigaStar’s role in the industry’s future, Hazem sees his company as part of a wave creating transparency and value in creator revenue streams. He anticipates more solutions emerging that leverage predictable revenue streams, allowing creators to access funding and grow their businesses more effectively.
GigaStar connects YouTube creators and fans through revenue-sharing securities. It allows fans to invest in and support creators’ channels using blockchain technology to streamline funding, enhance fan engagement, and transform fans into promoters. To learn more, visit gigastar.io.
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Creator Networks, Inc.(dba GigaStar). GigaStar is the Parent Company of GigaStar Portal, LLC (dba GigaStar Market), an SEC registered funding portal member of FINRA, and GigaStar Technologies LLC, offering blockchain and smart contract solutions via GigaStar Portfolio. Investment offerings are speculative, illiquid, and involve a high degree of risk, including the risk of loss of your entire investment. Past performance is not a guarantee of future results.
MEDIA
GigaStar CEO Hazem Dawani Explains How His Company Raised $2.5M For YouTubers While Protecting Their IP
July 8, 2024
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