Are you “in the know”?

Author

Calvin Caracciolo
August 31, 2022

Read Time4 min 20 sec

What's up, everyone! Welcome to my channel. This is Creator Business. We're the newsletter that will always be there for you, no matter how rough your views have been lately.

Here’s what the algorithm was pushing last week:

• Brooklyn and Bailey launch a massive new skincare product line

• Vsauce secures a huge liquidity event

• Chamberlain Coffee raises a $7 million Series A

Brooklyn and Bailey launch ITK nationwide

YouTube vlog stars and twin sisters Brooklyn and Bailey made headlines last month after completing a huge fundraising event. They raised over $200,000 by vlogging an RV Trip across the United States to raise money toward ending period poverty. Last week, they launched a skincare essentials brand called ITK, meaning "in the know."

Why is this a big deal?

The McKnight sisters don't mess around; this wasn't just some regular e-commerce skincare business launch. Here are the details:

  • ITK was co-created by Brooklyn and Bailey in partnership with Maesa

  • Maesa is the beauty incubator behind brands like Flower by Drew Barrymore and TPH by Taraji P Henson

  • On day one, they launched 15 SKUs in 3,800 Walmart stores and online at Walmart.com

My skin could use some cream; what are some of these 15 SKUS?

ITK describes itself as "cruelty-free." Hero products include a Clay Color-changing Mask, Nightly Clarifying Serum, Milk-to-Foam Cleanser and Prebiotic Gel Moisturizer.

Reacting to: Brooklyn and Bailey launching ITK

Essentially, Brooklyn and Bailey bring their brand and Gen-Z audience to the table while outsourcing all design and manufacturing by private labelling with Maesa. In addition, their mother Mindy McKnight's hair care brand Hairitage also partners with Maesa. This type of partnership where creators are heavily involved in the product but still able to focus on their content will likely produce the highest chance of success.

Vsauce sells Curiosity Box to Mel Labs for $12 million

Michael Stevens of Vsauce is a YouTube vet whose videos are some of the most thought-provoking on the platform. In 2016 he debuted the Curiosity Box, A STEM-focused subscription box. And last week, the company was acquired by Mel Labs for $12 million. Here are the saucy details.

What's in the box?

The Curiosity Box delivers four boxes per year filled with "advanced science products accompanied by high-level experiments, demonstrations and lessons on everything from angular momentum and differential pressure to electromagnetic force."

How well is Curiosity Box doing currently?

  • Greater than 10,000 active subscribers

  • More than 170 custom products created

  • Over 300,000 boxes shipped

Oh, and by the way, Curiosity Box was entirely self-funded by Stevens.

Who is Mel Science, and why did they do this deal?

London-based MEL Science started in 2015 and already offers many STEM-focused subscription boxes. The entire Curiosity Box team will be moving over to MEL. Stevens said joining MEL will allow Curiosity Box to expand to more resource-intensive product lines.

Reacting to: Vsauce selling Curiosity Box

Vsauce is at the end of a game that many creators are playing now; build a standalone brand that can be acquired or go public. The most obvious comparison that comes to mind is Mark Rober's Build Box, another science-focused subscription box. Sure, creators like Mr. Beast, Logan Paul & KSI are looking for $1 billion exits in the future. However, even "B" and "C" tier Youtubers can still make life-changing money by building small-to-medium-sized businesses worth over $10 million.

This newsletter needs a sponsor

Hey, we still aren't sponsored, but we've had a few brands reach out, and things look promising! So if you want to put your brand in front of an audience of creators, creator marketers, and creator platform founders, this is the place to do it. Send an email to [email protected], and let's chat!

Emma Chamberlain's Coffee Company raises $7 million

Emma Chamberlain, who rose to fame through her insanely popular YouTube vlogs, is looking to grow her coffee company to a similar level. Chamberlain Coffee got the caffeine-boost it needed after closing a $7 million Series A funding round. The inflow will be used to develop new products and expand Chamberlain Coffee's retail presence.

Who took part in the Series A?

Investors include:

  • D2C legend Nik Sharma, who's also invested in Mr. Beast's Feastables

  • Blazar Capital, the venture studio that helped create the brand with United Talent Agency (UTA; Emma Chamberlain's agency) in 2020

  • Ken Sadowsky, director of Hint, LifeAid Beverage and a board member of Vita Coco

  • Ole Kristoffersen and Steen Skallebaek, founders of Ole & Stein

  • Brandon Brown, founder of Grin

Reacting To: Chamberlain Coffee raising $7 million

We can't help but compare and contrast the differences between Emma's Chamberlain Coffee and Graham Stephan's Bankroll Coffee. Chamberlain Coffee has raised $8 million to fund growth. Last year, they hired former Red Bull strategy director Christopher Gallant to run the business as CEO. Bankroll Coffee feels more like a traditional influencer lifestyle business. Chamberlain Coffee is positioned as "super-premium" and can easily handle rising inflationary costs. In contrast, Bankroll Coffee is positioned as "affordable" and has struggled to earn consistent profits.

One thing is certain: it's not enough for creators to launch a great product that their fans will love. Instead, creators need to build a sound infrastructure and team to grow the brand, while the creator continues to focus on content.

Also on the FYP

  • KSI shares why you can't find PRIME anywhere.

  • Rhett & Link drop a new board game.

  • Twitch makes a massive change to exclusivity rules for streamers.

  • How meme king Litquidity is making bank by skewering Wall Street.

  • This would be an excellent place for an ad ;)

  • TikTok wants you to see what's going on Nearby.

That's all for now. See ya next week!

About Calvin Caracciolo, Editor-in-Chief of Creator Business

Calvin Caracciolo is a content creator who keeps you up to date with the fast-moving world of business in the creator economy. He’s also a really great guy!

Contact him about anything creator economy related at [email protected]. Follow him at tiktok.com/@calvincaracciolo and subscribe to his YouTube channel if Shorts are more of your thing.