9 votes

Substack has raised a $65 million Series B funding round, at a $650 million valuation

3 comments

  1. Deimos
    Link
    Valuation not included in the official blog post, but reported by Axios: Unpacking what Substack's VC funding round means for media A couple of other interesting Substack-related posts recently:...

    Valuation not included in the official blog post, but reported by Axios: Unpacking what Substack's VC funding round means for media

    A couple of other interesting Substack-related posts recently:

    9 votes
  2. [2]
    gpl
    Link
    I guess I'm just used to super inflated tech valuations, but my first reaction was that a $650 million evaluation feels low given how widely the site seems to be used and known online. But then I...

    I guess I'm just used to super inflated tech valuations, but my first reaction was that a $650 million evaluation feels low given how widely the site seems to be used and known online. But then I thought, damn $650 million is a lot for a newsletter service! It's wild how warped tech valuation perceptions have gotten.

    3 votes
    1. skybrian
      Link Parent
      This means they were able to raise $65 million in return for only 10% of the company. Not bad if you can do it. It’s sort of like a newsletter service, but sort of like Stripe or an App Store in...

      This means they were able to raise $65 million in return for only 10% of the company. Not bad if you can do it.

      It’s sort of like a newsletter service, but sort of like Stripe or an App Store in that they are getting transaction fees from other people’s businesses. Writing for money is a difficult business and they’re making it easier, for a few writers anyway. It’s still the writer’s job to make it a business.

      I’m wondering how wary they need to be of money-laundering potential, though? Selling a “newsletter” could be a way of hiding cash flow. I guess that’s technically Stripe’s problem since the subscription money goes through Stripe.

      4 votes