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Is Substack really worth $650M?
Something is worth what someone is willing to pay for it, and apparently investors are willing to pay $65M for 10% of Substack. This begs the question: how much have they given up along the way to raise that money?
The media coverage never calls this out, but it’s right there if you just do the math:
$65M at $650M valuation = 10% – OK, not too bad, on its own.
$17M at $49M valuation in July 2019 = 35%!
$2M seed round in April 2018 at unknown valuation = ? (not made public, not available on Pitchbook)
$125K Y Combinator pre-seed round – 7%
Simply put, they’ve lost control of their company already, and they may not even be done yet. TBD.
We hate to see this, especially when there’s a better way.
Is Substack really worth $650M? – TechCrunch
Substack didn’t invent the paid newsletter, but the startup’s early success with the model is enticing previous backers to more than double down on the media startup.
Is Substack really worth $650M?
Something is worth what someone is willing to pay for it, and apparently investors are willing to pay $65M for 10% of Substack. This begs the question: how much have they given up along the way to raise that money?
The media coverage never calls this out, but it’s right there if you just do the math:
$65M at $650M valuation = 10% – OK, not too bad, on its own.
$17M at $49M valuation in July 2019 = 35%!
$2M seed round in April 2018 at unknown valuation = ? (not made public, not available on Pitchbook)
$125K Y Combinator pre-seed round – 7%
Simply put, they’ve lost control of their company already, and they may not even be done yet. TBD.
We hate to see this, especially when there’s a better way.
Is Substack really worth $650M? – TechCrunch
Substack didn’t invent the paid newsletter, but the startup’s early success with the model is enticing previous backers to more than double down on the media startup.