Substack operates a software platform that lets writers publish newsletters and charge readers directly, providing an alternative to ad-driven media models. Founded in 2017, the company allows creators to own their mailing lists and keep the majority of subscription revenue while Substack collects a transaction fee. The service has grown rapidly, surpassing 5 million paid subscriptions in 2024, up from 2 million the previous year. The latest funding round values the business at $1.1 billion, a 70% jump from its 2021 valuation of $650 million. Substack earns money by taking a percentage of subscription payments, though exact revenue figures were not disclosed in the article. With fresh capital, the company plans to expand its suite of publishing tools, extend the reach of its writers, deepen creator support programs, and continue investing in its mobile app.

Total raised

$185M

Funding rounds

4

Latest round

Series C

Latest activity

Jul 2025