Good morning. It's Thursday, Oct. 30, and welcome to this week's Business & Finance newsletter. First time reading? Sign up here or click here to share with friends. |
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Dear readers—Welcome to our new email format! Our team has heard your feedback, and we will now cover a wider variety of topics with more links to explore in our weekly Business & Finance newsletter. As always, thanks for being a reader!
This week, we're covering Angel Investing, the Stock Market, and the Creator Economy. In my former, pre-1440 life, I was a reporter who covered influencer marketing and was often struck by just how pervasive the myths surrounding the creator economy were—keep scrolling to debunk a few of the most common ones with me.
Phoebe Bain, 1440 Business & Finance Section Editor
PS—Reader feedback is a gift. Send any thoughts, questions, or suggestions about our new format or anything else to [email protected]. |
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Angel investing, explained
Angel investors are individuals who invest their personal funds in early-stage startups and businesses. They often get involved earlier than other investors, typically at the seed stage before funding rounds begin (explore those two terms).
These investors typically have a high net worth to draw from, often earned through their own past entrepreneurial endeavors. They can be hands-on in helping a company succeed—and should that happen, their equity stakes (which are typically significant in size) pay off.
The term “angel investor” is thought to have originated on Broadway to describe individuals who backed theatrical productions.
Angel investors kick-start unproven startups before other investors, including venture capitalists and banks, are willing to take the risk. They typically invest anywhere from $250K to $500K. Collectively, the angel investing market grew to nearly $28B in 2024, and is projected to exceed $72B within a decade.
Also, check out ...
> Seven angel investors funded Google in its early days. (More)
> Cyan Banister, once homeless, was an angel investor in Uber and SpaceX. (More)
> See 2024's most active angel investors. (More)
> Learn how to angel invest. (More)
Explore everything else we've found on Angel Investing. |
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In partnership with Fidelity |
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What exactly is the stock market?
"The stock market" can be loosely defined as a set of exchanges and other places where shares of public companies are bought and sold. But to understand that definition, it’s important to define a few other terms, too.
Specifically, the stock market is made up of multiple stock exchanges—such as the Nasdaq and the New York Stock Exchange, two of the most well-known exchanges in the US (learn more about them). The sentence “I own 10 shares of Apple stock” illustrates the difference between stocks and shares (explore these definitions further).
The world’s most educated investors spend their entire careers trying to predict what the stock market will do next, and even they can’t predict it with 100% accuracy.
It’s easier to understand how the stock market works when you picture one company’s journey through it (see this video for an in-depth explainer).
Also, check out ...
> The Amsterdam Stock Exchange was the world's oldest stock exchange. (More)
> Active investors try to beat the stock market's performance. (More)
> See how pop culture has changed the way people invest. (More)
> Play a game where you're an investor with a crystal ball. (More)
Explore everything else we've found on the Stock Market. |
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The creator economy, 101
In 2019, children were three times more likely to say they wanted to be a YouTuber when they grew up than an astronaut, according to a Lego study. And the creator economy has only grown since then—one Columbia Business School paper claims it doubled in size between 2019 and 2023.
Put simply, the creator economy is a system powered by people creating online content for monetizable audiences. These “creators” and “influencers” make money off their digital audiences through brand deals or revenue shares with social media platforms.
A growing number of brands—from Coca-Cola to small businesses—pay influencers to promote their products or services on social media. Online platforms, including YouTube, Substack, and Twitch, also offer revenue shares for their top creators.
Many seem to think that being an influencer is today’s biggest get-rich-quick scheme. But the numbers tell a different story—only 12% of full-time creators make more than $50K a year, according to a recent survey.
Also, check out ...
> Top creators get paid millions of dollars per post. (More)
> The global creator economy is worth roughly $250B. (More)
> Inside the "YouTube camp" teaching kids to create content. (More)
> How Instagram traps changed art museums. (More)
Explore everything else we've found on the Creator Economy. |
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One Story We're Taking Stock In |
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They're calling it now: We've reached peak credit card rewards. Case in point? This article detailing the rivalry between American Express and Chase at this year's Wimbledon, one of the world's most exclusive sporting competitions, where both card companies hosted upscale private events for their respective premium cardholders—from a tennis match with actor Tom Holland to high tea and seats at Centre Court.
The piece (which was among my favorite reads of the week) attempts to answer two questions: What happened to simple points and airport lounges for top cardholders, and how long can this increasingly lavish perks competition go on? |
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> The battle of the plastics (Read) |
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> Everything you need to know about credit cards (1440 Topics) |
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In partnership with Fidelity |
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Need Help Choosing Your Investments? |
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Please support our sponsors! |
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Legendary investor Peter Thiel turned a $500K angel investment in Facebook into $1B. |
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