Is MrBeast actually worth $1.5 billion? • TechCrunch


Whenever YouTube Superstar Mr. Best Showing up in business or tech headlines, you’re guaranteed to find a slew of bewildering comments: Who is this guy, and why is a YouTuber important? Am I old if I don’t know who this is? Why is he younger than me, yet making so much money? Does this guy actually give people free islandsOr is it full?

If you don’t know who MrBeast is, that’s okay. It just means that you probably don’t use YouTube very often, or you never wonder what happens if you put 100 Million Orbeez In your friend’s backyard. But let me ask you this: Have you heard of Cribl, Snapdocs, Sayo Bank, or Cloth? I haven’t either, these are just some of the $1 billion+ company names I pulled from Crunchbase.

according to AxiosSources, MrBeast – 24-year-old Jamie Donaldson – is trying to raise $150 million for his business, worth $1.5 billion. It might seem hard to imagine how valuable a creator’s work could be, but the North Carolina resident built an impressive empire. With 109 million YouTube subscribers, MrBeast runs the fifth most subscribed channel on the platform, and is the highest paid YouTuber in the United States. Across his other five channels, he’s racked up another 82 million subscribers – and that doesn’t even include his three Spanish-speaking channels, which have around 33 million subscribers together.

YouTube is one of the most profitable platforms for content creators, because you can earn 55% of ad revenue as a member of the YouTube Partner Program. But MrBeast has expanded his business beyond the realm of social media – he’s tapped into his brand to open up Mr. Best Burgera Ghost Kitchen food chain, and a snack company called Feastables, which raised $5 million this year at a price $50 million valuation From 776, Shrug Capital and Sugar Capital.

But MrBeast’s business model is not as straightforward as making videos and making ad revenue. His uploads, which focus on stunts and contests for cash prizes, cost an outrageous amount of money. Last year, his movie “25 Minutes” wasreal life squid gameHuge video 3.5 million dollars to produce, including more than $456,000 in prize money. For comparison, Episode Nine”squid gameThe series costs Netflix a total $21.4 millionaveraging about $2.4 million per hourly installment.

A few weeks ago, Mr. Best said he was spending 8 million dollars a month on his works. Just last September, MrBeast told the creator-focused YouTube channel Colin and Samir who spent 4 million dollars every month. This is a big leap.

Some companies reach unicorn status (a valuation of over $1 billion) before they turn a profit. However, Forbes estimates that MrBeast made it 54 million dollars In 2021, he has already proven to risky investors that they can bet on him to return their investment.

“Videos get views even if I don’t upload them, so if I really want to, I can live off the money the views make,” MrBeast said. from the inside. But if the 24-year-old wants to grow faster and make more money, venture capital funding might actually make sense.

MrBeast has already secured smaller-scale funding from companies such as Jellysmack and Spotter. Jellysmack uses AI to maximize cross-platform growth for top creators in exchange for lower revenue; crook It gives YouTubers large amounts of upfront capital in exchange for the proceeds from their back catalog. But as one of the most successful content creators in the world, MrBeast can get even bigger with venture capital.

But is getting bigger always better? MrBeast’s business model is like a tail-eating snake – no one makes money like him, but no one spends it either. He described his margins as “thin razorIn conversation with Logan Paul, as he reinvests most of his earnings into his content. His viewers expect each video to be more impressive than the last, and from the outside looking in, it seems like it’s only a matter of time before MrBeast can’t up the ante (and for For other creators, it has resulted in disaster). So, if MrBeast’s work is really a unicorn – I’d bet on it – then he has two options. Will he use a $150 million cushion to make his business more sustainable, so he doesn’t have to keep it bury himself alive? Or will he keep pushing for more until there’s nothing left?

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