Founded in 2017 and providing direct revenue to content producers, Substack completed a new investment tour. The company provided a $ 100 million funding in this round of Series C. While led by Bond and The Chernin Group, important names, including Andrelesen Horowitz, supported. Participants from the world of sports and fashion took part; Rich Paul, the founder of Klutch Sports, and Jens Gens, CEO of Skims, were among the other names investing in Grde.
This new investment has seriously increased Substack’s valuation. The company, which was reported as 650 million dollars in 2021, rose to $ 1.1 billion as of today. This increase corresponds to a growth of about 70 percent. This rise of the company points to a remarkable position not only financial, but also in the sectoral sense.
Substack plans to offer more vehicles to content producers
The platform stands out as a publication medium preferred by independent journalists and writers. Thanks to the subscription -based business model, content producers can obtain revenue directly from their readers. The number of paid subscribers, which was 2 million in 2023, reached 5 million in the first quarter of 2024. This acceleration became one of the main factors that increased the interest of investors.
In a statement made by the management, most of the investment will be allocated to product development activities. The platform aims to offer more comprehensive tools to authors. In addition, the technical investments in the substack application are on the priority agenda. Increasing user experience is critical for the company’s sustainability.
Substack aims to improve not only with written content, but also in voice content production. For this reason, new features for the field of podcast were studied. With the strengthening of the technical infrastructure, content producers are expected to work more flexible. All these innovations are expected to strengthen the position of the platform against competitors.
However, as a content platform, competition operates in a very intense environment. Alternative platforms such as Medium, Patreon and Ghost continue to attract users. In order for Substack to stand out in the long run, not only technical improvements, but also in business relations with authors, it needs to build confidence. Income sharing models and support mechanisms will be decisive in this context.
However, Substack’s structure, which is not based on advertising revenue, distinguishes it from traditional media models. This structure, which has a direct relationship with content producers, is seen as advantageous especially for independent journalists. In the post -investment period, how this structure will develop and the future of the platform are among the main elements. At this point, the user confidence in the subscription system is also important.
One of the company’s medium -term targets is to include more manufacturers in the platform. With new funds, a more aggressive growth strategy can be followed. In addition, it may be raised to carry out studies on regional expansion and different language options. These steps can allow Substack to reach wider audiences on a global scale.