Blockchain technology firm Insomnia Labs has received $12 million in funding to launch CreatorFi, a platform designed to provide financing solutions for digital content creators. The funding comes as a credit line from Kamui Finance, Intrinsic Capital, and partners, bringing the company’s total funding to over $14 million.

The Creator Financing Gap

According to Tech Funding News, the digital creator economy is projected to reach $1.49 trillion by 2034, yet creators face significant challenges in securing capital. Traditional banks remain hesitant to finance digital rights, while established industry players often demand up to 80% ownership in exchange for upfront capital.

CreatorFi aims to fill this gap by providing creators with access to financing without sacrificing ownership or accepting unfavorable terms. The platform launches with a $5 million bond program for creators on Yoola’s platform in partnership with Kamui Finance.

Technology and Partnerships

The platform is built on Avalanche blockchain technology, which provides secure, transparent, and scalable asset tokenization. CreatorFi integrates with the Coinbase Developer Platform to manage stablecoin liquidity and streamline disbursements.

“Today, digital creators generate massive income through their content, yet banks still don’t know how to underwrite these modern revenue streams,” Billy Huang, CEO of Insomnia Labs, said in a statement.

Key features include AI-powered underwriting with data-driven risk assessment, embedded payment systems for managing advances and repayments, global access via stablecoin and fiat lending, and blockchain-backed transparency for all stakeholders.

Early Adoption and Market Position

Yoola, one of the world’s largest YouTube Multi-Channel Networks, is among the first to adopt CreatorFi. The platform enables over 1,200 creators to access funding without traditional banking friction.

In the music sector, Record, a royalty infrastructure platform, utilizes CreatorFi to provide financing to its enterprise clients, streamlining revenue flows for artists, rights holders, and institutional partners.

CreatorFi combines blockchain infrastructure, AI-driven underwriting, and stablecoin liquidity in an integrated system. Insomnia Labs positions CreatorFi as its first major initiative in building a broader on-chain credit ecosystem. The company plans to expand into other intellectual property industries, including gaming, music, and sports, where rights holders face similar financing challenges.

“Our goal is to become the leading provider of accessible credit across the IP economy,” stated Huang.

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