🧱 Roblox keeps on building

By this point, you may already be familiar with Lil Miquela — the virtual influencer with 2.8m Instagram followers and major brand deals.

The company behind the creation, Brud, raised $25m+ at a valuation of $144m+ before being acquired by the NFT startup Dapper Labs in 2021.

Now, a different Vermont-based company wants to create the Disney of digital influencers.

Superplastic…

… is a startup founded by Paul Budnitz, who previously founded designer toy company KidRobot.

Much like Marvel, Superplastic wants to build a universe around its cartoonish characters, per TechCrunch. They include:

• Guggimon, a DJ and horror artist
• Janky, a “streetwear icon”
• Dayzee, a flirtatious nuclear physicist

They appear on social media and as playable “Fortnite” skins, and collaborate with brands like Tommy Hilfiger. Oh, and they’re getting a TV show.

Amazon’s Alexa Fund…

… led a $20m funding round for Superplastic, and Amazon Studios will produce an animated comedy starring the trio. If this video of Guggimon mainlining booze and pills is any indication, it won’t be for kids, but may play well with Amazon hits like “The Boys” and “Invincible.”

Budnitz also told TechCrunch that he’s interested in what his IP company could do with Amazon-owned Whole Foods — virtual influencers may not eat, but they can probably hawk branded energy drinks.

What’s the appeal?

People already purchase things their favorite TV characters wear (see the buzz around Pedro Pascal’s trucker jacket from “The Last of Us”). Many believe that virtual influencers can, and will, inspire similar consumerism.

A survey from The Influencer Marketing Factory found that:

• 58% of respondents followed at least one virtual influencer
• 35% bought something one promoted

Companies already pay China’s Baidu $2.8k-$14.3k per year for virtual influencers who appear on livestreams — and Baidu says this part of their business has doubled since 2021.

An added bonus: Much like the Terminator, they don’t sleep, age, or complain. They also don’t get embroiled in scandals, unless by design — like the time Lil Miquela was hacked by a rival.

Do people actually want to spend real money in a digital world that looks like it’s built of Lego blocks?

Increasingly, the answer appears to be yes.

Earlier this week, Roblox stock jumped on a strong Q4 earnings report. Metrics include:

• Roblox’s bookings — a leading indicator for gaming companies’ future revenue — increased 17% YoY to $899.4m.
• Average daily users reached 58.8m, up 19% YoY.
• In 2022, users spent 49.3B hours on Roblox — 5.5m+ years of cumulative time.

The platform appears to be successfully aging up, too, which analysts consider critical for growing profits. Last quarter, ~55% of all Roblox users were over the age 13, up from ~40% in Q4 2019.

Roblox is now focused on expanding its economy of user-generated goods. Last quarter, the average monthly number of people buying virtual goods on Roblox reached an all-time high of 13.4m, at an average spend of $22.31 per user.

Food for thought: Last year, Roblox said that 58% of Gen Z now thinks a career as a digital fashion designer is just as or more impressive than a real-life one.

In case you missed ‘em, here’s this week’s best…

• Tweet: When your boss tells you to “be a fly on the wall” in another team’s meeting.
• Blog: Too much on your mind? Use apps to build a second brain.
• Chart: New data sheds some light on the impact of housing costs on romantic relationships.
• Story: Zack’s deep dive into how the inventor of the troll doll missed out on a fortune.
• Video: Our latest “Hustlenomics” episode about the economics of all-you-can-eat buffets.