ShopMy wins $18.5 million to help influencers earn more by promoting products

Image credits: shop my

ShopMy, the marketing platform for content creators to connect with brands and monetize their content, announced today that it has raised $18.5 million.

The company will use the funds to help expand its network of 40,000 creators, including Alix Earle, the internet’s newest “It Girl” with more than 10 million followers on TikTok and Instagram.

ShopMy’s marketing platform allows you to build a digital storefront, access a catalog of millions of products, create commissionable links, chat directly with businesses through our mobile app, and earn money from product recommendations. We provide creators with the tools they need.

The company told TechCrunch that creators have earned “tens of millions in commissions” on the platform so far.

For brands, the platform is a talent discovery hub and campaign builder rolled into one. Over 1,000 companies are part of ShopMy’s network, including Nike, NET-A-PORTER, Chanel, Drunk Elephant, and Tatcha.

ShopMy was founded in 2020 by CEO Harry Lane, a former Oracle software developer who founded an e-tutoring startup while attending MIT. Chris Tinsley, MIT Sloan alumnus. and food blogger Tiffany Lopinski (COO). The idea for ShopMy was born while Tinsley was studying his economics as a creator in college.

“He observed a major disconnect in the social media ecosystem, with influencers struggling to effectively monetize product endorsements and their followers not having an easy path to purchase. “Chris saw ShopMy as a solution, a bridge to transform the way influencers share and monetize their product recommendations,” Rein explains.

This large round means investors continue to take the influencer marketing space seriously. Perhaps they are right. The creator marketing industry is expected to grow to approximately $24 billion by the end of 2024, and the value of the entire creator economy is estimated to reach $480 billion over the next three years. As venture capitalists have told us in the past, influencer marketing platforms are considered one of the most investable categories in the creator economy because they continue to support creators’ income.

Image credits: shop my

In recent years, several startup companies have appeared that are launching platforms that connect creators and brands. Even Instagram has embraced creator marketing, launching a marketplace tool for paid partnerships in 2022. The marketplace brings together thousands of creators and brands, and last month Instagram expanded to eight more countries.

ShopMy says its direct competitors are LTK and GRIN, and its key differentiators are its unique features. For example, the ‘Social Mentions’ feed allows brands to see all of his organic mentions (including expired stories) on TikTok, YouTube, and Instagram, so they can understand their online presence and create new Discover posts by creators. ShopMy is looking to integrate with other social platforms such as Substack and Pinterest.

The company recently introduced “Lookbooks,” which allows brands to submit gift requests and creators to choose products that match their aesthetic. Since its launch four months ago, Lookbooks has facilitated the distribution of over $2 million worth of gift items, ShopMy touts.

ShopMy receives a commission on creators’ sales. The company did not disclose the exact fee, but said it was a “small amount.” Meanwhile, brands pay subscriptions starting at $999. Costs increase depending on the number of advanced features a brand desires.

Image credits: shop my

In addition to network expansion, the new capital will be used for product development and hiring. The company plans to accept content creators from other fields in the near future, including maternity, fitness, wellness, and travel. ShopMy currently only works with beauty, lifestyle, and fashion influencers.

The round was led by Inspired Capital. Additional investors include AlleyCorp, Scott Belsky (Adobe Chief Strategy Officer), Jennifer Fleiss (Rent the Runway co-founder), and Rand Currier (Granite co-founder and COO).