Substack raises US$100m to expand tools, hits US$1.1b valuation
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The news: Substack has raised USD100 million ($154.22 billion) in funding led by tech investment firm BOND and the Chernin Group, with participation from Andreessen Horowitz, Klutch Sports Group founder Rich Paul and Skims co-founder Jens Grede.
The numbers: The funding values the company at USD1.1 billion, almost 70% higher than its 2021 valuation of $650 million, The New York Times reported, citing people familiar with the deal.
Substack said it will use the money to invest in “better tools, broader reach, and deeper support for writers and creators,” and in its app, which now has millions of users.
The context: Founded in 2017, the startup recently surpassed 5 million paid subscriptions, according to Bloomberg, and launched a USD20 million fund to lure creators from TikTok and other platforms.
Once critical of advertising and social media, Substack is also now building a social network and planning to support native advertising in response to demand from creators.
What they said: “At Substack, we believe the heroes of culture are the ones who shape it. Technology should serve them, not the other way around. That’s why we’re building tools and a network to protect their independence, amplify their voices, and foster deep and direct relationships,” the company said in a blog post.
“These are the people who will lead us to a better culture, and a future we can believe in. This funding is our chance to get behind them. We’ll invest in better tools, broader reach, and deeper support for the writers and creators driving Substack’s ecosystem.”
The sources: Substack, Bloomberg, The New York Times
