Substack has secured $100 million in Series C funding, which has pushed its valuation beyond $1.1 billion, the company announced. The investment round underscores growing investor confidence in platforms that serve independent content creators.

The newsletter company, which launched in 2017, has now raised approximately $200 million in total funding. 

This latest round includes participation from Andreessen Horowitz, which led Substack’s Series B round, along with The Chernin Group, BOND, Klutch Sports Group founder Rich Paul, and Skims co-founder Jens Grede. BOND’s Mood Rowghani will join Substack’s board.

Growth in Subscriptions and Creator Earnings

Substack reports surpassing five million paid subscriptions on its platform, more than doubling from two million in 2023. The company now hosts over 50 creators earning more than $1 million annually through their newsletters.

While Substack hasn’t recently disclosed current revenue figures, the company generated $12 million in gross revenue in 2021. After previously focusing on profitability following the pandemic, Substack has shifted its strategy toward growth amid increasing creator interest.

The platform continues to attract established journalists from traditional media outlets. Recent additions include former CNN anchor Jim Acosta, former ABC journalist Terry Moran, and former MSNBC host Joy-Ann Reid. Acosta quickly accumulated more than 10,000 paid subscribers within weeks of leaving CNN in January.

Business Model and Investment Plans

Substack operates by taking a 10% commission on all subscriptions sold through its platform. In exchange, creators receive technical and tactical support tools, including advertising sales assistance, marketing resources, legal support, and in some cases, healthcare benefits.

This commission rate exceeds that of competitors like Ghost and Beehiiv, though Substack offers a larger scale and marketing reach.

In their announcement, Substack co-founders Chris Best, Hamish McKenzie, and Jairaj Sethi indicated the new capital will fund “better tools, broader reach, and deeper support for the writers and creators driving Substack’s ecosystem.”

The company has matured from a simple email service to a business and creative platform serving writers, journalists, podcasters, video creators, and influencers, reflecting broader trends in the creator economy where independent content producers increasingly monetize directly from their audiences.

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