{"id":27744,"date":"2023-03-29T21:50:14","date_gmt":"2023-03-29T21:50:14","guid":{"rendered":"https:\/\/scienceandnerds.com\/2023\/03\/29\/substack-takes-a-different-tack-to-raise-more-capital\/"},"modified":"2023-03-29T21:50:15","modified_gmt":"2023-03-29T21:50:15","slug":"substack-takes-a-different-tack-to-raise-more-capital","status":"publish","type":"post","link":"https:\/\/scienceandnerds.com\/2023\/03\/29\/substack-takes-a-different-tack-to-raise-more-capital\/","title":{"rendered":"Substack takes a different tack to raise more capital"},"content":{"rendered":"

Source:https:\/\/techcrunch.com\/2023\/03\/29\/substack-crowdfunding-extension-round\/<\/a><\/br>
\nSubstack takes a different tack to raise more capital<\/br>
\n2023-03-29 21:50:14<\/br><\/p>\n

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It turns out<\/span> that if you have an active customer audience invested in the long-term viability and success of your platform, you can crowdfund a venture-sized extension round<\/a>.<\/p>\n

Substack, a venture-backed subscription media platform<\/a> popular with writers and known for its email service, has collected more than $5 million in pledges for an extension to its Series B from its community and the internet at large. The sum pales compared to how much it raised in its early-2021 funding round worth $65 million, but it\u2019s still real money and capital for a startup that reportedly shelved its Series C hunt.<\/p>\n

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The Exchange explores startups, markets and money. <\/em><\/strong><\/p>\n

Read it every morning on TechCrunch+<\/a> or get The Exchange newsletter<\/a> every Saturday.<\/em><\/strong><\/p>\n

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The company intends to share more financial data<\/a> before its equity crowdfunding actually collects funds from its new investor group<\/a>, figures that could shake up the amount of capital that it can raise; poorer-than-anticipated numbers could scare off some checks, while stronger-than-expected figures could help ensure that its ample pledge count becomes concrete in the form of capital in the bank.<\/p>\n

I\u2019ve covered the odd crowdfund before, including Juked.gg\u2019s first and successful round<\/a> that it put together on Republic; a later attempt<\/a> by the same company to raise more didn\u2019t work out, but the model has juice. Frankly, Substack\u2019s rapid success in attracting more than the legal yearly limit<\/a> for equity crowdfunding in the form of pledges indicates that the method of fundraising remains viable.<\/p>\n

For some companies, at least. Substack is framing its crowdfund as a way for its users (customers, really) to buy into the platform they use. That\u2019s pretty cool, frankly, and will provide its active users with a stake in their own platform.<\/p>\n

The sticky bit is price.<\/p>\n

When Substack wanted to go out and raise its next round of venture capital, it had to go through a pricing process. Reporting from the time indicated that its expectations were in the $750 million to $1 billion range<\/a>. That price didn\u2019t clear, given that the fundraising effort was called off. After that, the company tightened up its cost structure<\/a>\u00a0and kept growing.<\/p>\n<\/p><\/div>\n

<\/br><\/br><\/br><\/p>\n

Science, Tech, Technology<\/br>
\n<\/br>
\nSource:https:\/\/techcrunch.com\/2023\/03\/29\/substack-crowdfunding-extension-round\/<\/a><\/br><\/br><\/p>\n","protected":false},"excerpt":{"rendered":"

Source:https:\/\/techcrunch.com\/2023\/03\/29\/substack-crowdfunding-extension-round\/ Substack takes a different tack to raise more capital 2023-03-29 21:50:14 It turns out that if you have an active customer audience invested in the long-term viability and success of your platform, you can crowdfund a venture-sized extension round. Substack, a venture-backed subscription media platform popular with writers and known for its email service, […]<\/p>\n","protected":false},"author":1,"featured_media":27745,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","om_disable_all_campaigns":false,"pagelayer_contact_templates":[],"_pagelayer_content":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[26,17,8],"tags":[],"class_list":["post-27744","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-science","category-tech","category-technology"],"yoast_head":"\nSubstack takes a different tack to raise more capital - Science and Nerds<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/scienceandnerds.com\/2023\/03\/29\/substack-takes-a-different-tack-to-raise-more-capital\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Substack takes a different tack to raise more capital - Science and Nerds\" \/>\n<meta property=\"og:description\" content=\"Source:https:\/\/techcrunch.com\/2023\/03\/29\/substack-crowdfunding-extension-round\/ Substack takes a different tack to raise more capital 2023-03-29 21:50:14 It turns out that if you have an active customer audience invested in the long-term viability and success of your platform, you can crowdfund a venture-sized extension round. 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