Spotter, a creator startup that provides upfront financing to YouTubers, lays off staff after partnering with Amazon

Spotter, a startup that underwrites creators and offers AI-driven tools, has laid off staff following its partnership with Amazon, according to The Information. The layoffs occurred in early November and affected various parts of the Los Angeles-based company, marking a shift for the five-year-old startup.

This news comes just three months after Spotter secured $7.4 million in funding to improve its AI tools for creators. Since its founding in 2019, Spotter has distributed $940 million in proceeds to creators, partnering with over 735 YouTube channels, including prominent names like MrBeast and Deestroying.

“Spotter, a startup that funds YouTubers, lays off staff following Amazon deal… It cut staff in early November across different parts of the Los Angeles-based company,” The Information reported.

Amazon’s recent investment in Spotter is part of the retail giant’s broader plans to integrate the partnership across multiple areas of its business. Vernon Sanders, head of television at Amazon MGM Studios, said the collaboration aligns with Amazon’s push into the creator economy, underscoring the increasing convergence of media and creator-driven content.

The layoffs at Spotter reflect a broader trend among creator-focused startups, many of which are grappling with how to scale their businesses sustainably. In October 2024, Jellysmack, another player in the creator economy, announced layoffs affecting 22 U.S. employees and additional staff in France, attributing the cuts to changes in monetization models on Meta-owned platforms.

Spotter’s model of providing upfront financing to creators has resonated with many in the industry. “Creators have done second and third deals with us, so it’s not a one-and-done type of situation. Six months later, they [do another deal] because they see the success of reinvesting in themselves,” Spotter founder and CEO Aaron DeBevoise said in September.

Meanwhile, major tech companies have been making significant moves in the creator space over the last few years, with YouTube standing out as a leader in its established streaming model. The platform, owned by Google, has solidified its position as the top player in the industry. On Tuesday, YouTube reported third-quarter financial results that outpaced expectations.

Advertising revenue for YouTube hit $50 billion over the past four quarters, marking a major milestone, according to Alphabet, Google’s parent company. During an earnings call with Wall Street analysts, Google executives highlighted that increased viewing on TVs has been a key driver behind YouTube’s growth.

While the creator economy continues to expand, companies like Spotter and Jellysmack are adapting to market pressures, underscoring the challenges of building scalable models in a competitive space.