Private Markets, Angel and Secondary Investing, Sacra

Sacra

Private Markets, Angel and Secondary Investing

Bringing transparency to private markets so investors, founders, and employees can build on conviction. Sacra delivers deeply researched insights on the private companies shaping tomorrow's markets. By surfacing the data, context, and operator perspective that are missing from private markets today, we help secondary buyers and sellers price equity accurately and unlock liquidity for the people building these businesses.

Private Capital Markets

<ul><li>ConvertKit will definitely hit $100M or more in annual revenue in the next four or five years.</li><li>We have all the biggest newsletters on the web that are written by a single author.</li><li>ConvertKit's built for you to have this incredible reach and scale without this complexity.</li></ul>

ConvertKit will definitely hit $100M or more in annual revenue in the next four or five years.We have all the biggest newsletters on the web that are written by a single author.ConvertKit's built for you to have this incredible reach and scale without this complexity.

Nathan Barry, CEO And Founder Of ConvertKit, On ConvertKit’s Path To $100M In Revenue

<ul><li>Today, the bootstrapped ConvertKit (valued at $200M) is at $33.5M in ARR growing 15% year-over-year.</li><li>VC funding for creator startups fell to $123M in Q1’23, marking 7 straight quarters of decline since the peak at $1.7B in Q2’21.</li><li>In the near term, the creator economy’s cultural influence has outpaced its GDP—in the long term, the networks that have begun to form at ConvertKit (connecting creators with Creator Network), Beehiiv (connecting creators to advertisers with Ad Network) and Substack (connecting readers and creators with Reader and Notes) are pulling adjacent, distribution-constrained SMBs into the ecosystem, whether they call themselves creators or not.</li></ul>

Today, the bootstrapped ConvertKit (valued at $200M) is at $33.5M in ARR growing 15% year-over-year.VC funding for creator startups fell to $123M in Q1’23, marking 7 straight quarters of decline since the peak at $1.7B in Q2’21.In the near term, the creator economy’s cultural influence has outpaced its GDP—in the long term, the networks that have begun to form at ConvertKit (connecting creators with Creator Network), Beehiiv (connecting creators to advertisers with Ad Network) and Substack (connecting readers and creators with Reader and Notes) are pulling adjacent, distribution-constrained SMBs into the ecosystem, whether they call themselves creators or not.

<ul><li>Substack (2017) built “Svbtle with a paywall”, paying advances to prominent writers like Matthew Yglesias (ex-Vox) and Anne Helen Petersen (ex-Buzzfeed) to create a halo around its brand combined with a business model that enabled them to index on the upside of its big-name writers and focus on quality over mass market.</li><li>Sacra estimates that revenue at Substack grew 58% year-over-year to $19M in 2022 off of 35 million subscribers, 2 million paid subscribers and $145M million in GMV with $82 million in funding raised.</li><li>In March 2023, Substack launched an equity crowdfunding campaign on WeFunder to raise $5M at a $585M pre-money valuation and estimated 30x multiple on $19M in TTM revenue, a flat round from their 2021 Series B led by Andreessen Horowitz where they raised $65M at a 102x multiple.</li></ul>

Substack (2017) built “Svbtle with a paywall”, paying advances to prominent writers like Matthew Yglesias (ex-Vox) and Anne Helen Petersen (ex-Buzzfeed) to create a halo around its brand combined with a business model that enabled them to index on the upside of its big-name writers and focus on quality over mass market.Sacra estimates that revenue at Substack grew 58% year-over-year to $19M in 2022 off of 35 million subscribers, 2 million paid subscribers and $145M million in GMV with $82 million in funding raised.In March 2023, Substack launched an equity crowdfunding campaign on WeFunder to raise $5M at a $585M pre-money valuation and estimated 30x multiple on $19M in TTM revenue, a flat round from their 2021 Series B led by Andreessen Horowitz where they raised $65M at a 102x multiple.

<ul><li>Substack has made a lot of it public recently, so you can check my page and see that I have around 49,000 subscribers.</li><li>Somewhere around mid last year, Substack really started putting money and time into their recommendations feature.</li><li>Substack's model of charging 10% can become a massive cost item for successful publications.</li></ul>

Substack has made a lot of it public recently, so you can check my page and see that I have around 49,000 subscribers.Somewhere around mid last year, Substack really started putting money and time into their recommendations feature.Substack's model of charging 10% can become a massive cost item for successful publications.

Justin Gage, Founder Of Technically, On How Substack Earns Its 10% Take Rate

<ul><li>Substack had $9 million in revenue in 2021, up from $2 million in 2019.</li><li>Substack's user base reached 1.5 million active subscribers.</li><li>The company is valued at $650 million.</li></ul>

Substack had $9 million in revenue in 2021, up from $2 million in 2019.Substack's user base reached 1.5 million active subscribers.The company is valued at $650 million.

Substack Revenue, Users, Growth, And Valuation

United States

Newsletter tool for writers to publish, monetize, and grow subscriber audiences

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Substack (SUBSTACK US)

Nathan Barry, CEO And Founder Of ConvertKit, On ConvertKit’s Path To $100M In Revenue

Sacra interview with Nathan Barry, CEO and founder of ConvertKit.

Sacra

ConvertKit Vs. Beehiiv Vs. Substack

TL;DR: Beehiiv just announced a $12.5M Series A to go after Substack as they and ConvertKit all battle it out to build the best, most monetizable...

Sacra

Substack: The $19M/year Content LVMH

Substack grew revenue an estimated 10x during COVID and built a star-studded roster of writers. Now, it faces growing tensions between building for...

Sacra

Justin Gage, Founder Of Technically, On How Substack Earns Its 10% Take Rate

Sacra interview with Justin Gage, the founder of Technically.

Sacra

Substack Revenue, Users, Growth, And Valuation

Sacra model for Substack's revenue, comps, and growth rate.

Sacra

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