Substack, the newsletter publishing platform co-founded by Canadian Chris Best along with Hamish McKenzie and Jairaj Sethi, has closed a $100 million USD (~$137 million CAD) Series C round.
The fresh funding, led by BOND and The Chernin Group, pushes the company’s valuation to $1.1 billion USD ($1.5 billion CAD), according to The New York Times.
This milestone round also attracted backing from a16z, Klutch Sports Group CEO Rich Paul, and SKIMS CEO Jens Grede. The company, based in San Francisco, says the funds will be used to enhance its app’s social features and provide better publishing tools for creators.
Backed by a mission to empower creators
Substack lets independent writers and creators publish directly to subscribers and take home the bulk of their earnings. The platform charges a 10% cut on subscription revenue, plus processing fees.
“Creators are building livelihoods based on trust, quality, and creative freedom,” wrote CEO Chris Best in a joint statement with co-founders McKenzie and Sethi. “They know the future belongs to those who build it.”
Founded in 2017, Substack now boasts over 5 million paid subscribers. Prominent Canadian journalists like Paul Wells, Jen Gerson, and Rachel Gilmore are among its users.
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Alternative to crumbling traditional media
With over 570 local Canadian media outlets shuttered or merged since 2008 and advertising revenue halved since 2004, Substack has emerged as a viable business model for writers seeking independence from legacy media.
Despite the platform’s popularity, it hasn’t yet reached profitability. Best told The Information in June that profitability remains a long-term goal, with the near-term focus on growth and feature development.
Not without controversy
Substack’s light-touch content moderation has sparked backlash, particularly following its initial reluctance to remove newsletters promoting extremist views. High-profile tech journalist Casey Newton exited the platform in protest in 2024.
Nevertheless, the platform remains a dominant force in the creator economy, with approximately $200 million USD raised to date and major expansion plans ahead.
Substack’s latest funding solidifies its position as a leading tool for independent voices, while signaling to creators and investors alike that the newsletter business still has plenty of growth ahead.
