Substack is raising $2 million from writers and paid subscribers.
@EricNewcomer @CaseyNewton you are market makers, reporting on well "market makers". Great to see your collective success. Many journalists join outlets from big media players to independent roles using Substack that provide them with a platform to share their voice. You both are the rare occurrence like I have shared with @KaraSwisher in her career that is THE platform regardless of where you practice your craft. Godspeed and hope the $5K turns into an epic vacation, home and or college tuition for a future kid for you personally Eric!
I'm a big fan of what Substack has *built*, but the *investment* just seems a good bit sleazy.
Look at the financials: https://twitter.com/Travis_Jamison/status/1644361615997804545
Whether intentional or not, they definitely appear to be taking advantage of less sophisticated investors. This valuation is miles higher than an actual VC would pay.
I love the substack model and how they're challenging other outlets and providing alternative viewpoints etc (esp ones I don't agree with). Your post inspired me to put $5k in but from an investment pov, valuation seems a little high as others have noted since it's the same as what they raised at $650m in March 2021 at the peak of the market. So I think my investor cap may get the veto here.