Substack has seen strong growth in recent years. Now, it’s being rewarded with a $100 million investment to help entice audio and video creators to the platform with new and expanded features.
“We’ll invest in better tools, broader reach, and deeper support for the writers and creators driving Substack’s ecosystem,” the company said of the investment. “Already, hundreds of millions of dollars flow from audiences to creators there every year. Millions use the app weekly and pay for the work they discover. But this is just the beginning.”
Substack will take a 10% share of all revenue generated by creators that have enabled paid subscriptions, plus credit card fees. The platform will also equip creators with the ability to own their subscriber lists and provide other analytics.
Additionally, the company provides an RSS feed for the thousands of podcasts already utilizing the platform. Substack also says it will work more closely with advertisers and marketers to ensure that creators utilizing the platform are able to better monetize their content.
The round of funding comes from the likes of Investors at Bond and The Chernin Group, as well as Skims co-founder and CEO Jens Grede, Klutch Sports Group CEO Rich Poll, and Andreessen Horowitz, among others. With the $100 million in funding secured, the digital platform is now valued at $1.1 billion.
“We’re thrilled to partner with these investors, who bring a wealth of experience across tech, media and culture, as we put this capital to work serving creators and their communities,” Substack co-founders Chris Best, Hamish McKenzie, and Jairaj Sethi said in a joint statement.
The platform has grown to be a popular one with independent creators, especially in the news media. Dan Rather, Tara Palmieri, Chris Matthews, and Jim Acosta, among dozens of others, have utilized the digital platform to launch independent endeavors.
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