Patreon is a startup company with an app that allows content creators and artists to get paid directly for their exclusive content by their fans. Founded in 2013 by YouTube creators Jack Conte and Sam Yam, the business was founded on the idea that creators should be paid for the value they provide through their unique content.
The subscription-style model of the startup company allows creators to set a monthly subscription price of their choice for their exclusive, extra content that is not available on their other social media platforms. As a result, the business takes a 5% to 12% commission depending on the subscription model creators select when they sign up for the platform. After Patreon’s commission is deducted, creators are able to profit the rest of the money earned from their subscribers.
According to the startup app company, the business estimates there are more than 200,000 creators on Patreon, over 6 million active monthly subscribers to their content creators, and more than $2 billion users who have paid the creators on the platform.
Crunchbase data reports the startup app company has raised about $258.3 million in total financing with investments from Thrive Capital, Wellington Management, Glade Brook Capital Partners, Index Ventures, and others.
$4 Billion Valuation
Today, Patreon announced the business raised $155 million in a Series F funding round led by Tiger Global with participation from other new and previous investors. This new financing triples Patreon’s valuation from roughly six months ago to now reach a total of $4 billion. Patreon was valued at $1.2 billion in September 2020 when the business raised $90 million.
In a blog post released by the Patreon Team, it stated the business and its new funding are fueling a Second Renaissance as a combination of creation and connectivity tools available at people’s fingertips, which allows for a “creative rebirth” in the online era.
With the new financing, the startup company plans to focus on three key areas of business expansion: enhancing creator and patron experiences on mobile and desktop, adding new content consumption tools, and further expanding globally.
The Patreon Team said in the blog announcement, “Patreon is - and will continue to be - a place where creators can build their own worlds, on their own terms. And now, those worlds can be as big as a creator can dream...A new era of creativity is here, one that we’ve championed for years, and we can’t wait to build more of what the future holds for all of us.”
The announcement of the new financing comes a few months after The Information reported in January that Patreon is considering going public this year and has been approached by several special purpose acquisition companies (SPACs).
About the Author
McKenzie Carpenter is a graduate of Central Michigan University with a B.A.A. in Integrative Public Relations and French. McKenzie has previously worked for small businesses and nonprofit organizations.