Substack, the newsletter platform that has become a haven for independent writers and creators, announced a $100 million Series C funding round on July 17, 2025, valuing the company at $1.1 billion.
The round saw participation from investors including Bond Capital, Andreessen Horowitz, and Jens Grede, CEO and co-founder of Skims, the apparel brand co-founded by Kim Kardashian. This latest investment brings Substack’s total funding to approximately $200 million since its founding in 2017.
The company plans to use the funds to enhance its app, which has evolved from a simple newsletter platform into a social media-like ecosystem, and to develop new tools for content creators. Substack’s co-founders — Chris Best, Hamish McKenzie, and Jairaj Sethi—emphasized their commitment to empowering creators, stating, “We’re building an economic engine to power this entire cultural ecosystem. Our model is simple: creators make money by serving their communities, and Substack succeeds only when they do.”
Substack’s growth has been impressive, with the platform surpassing 5 million paid subscriptions in March 2025, up from 2 million in 2023. This milestone reflects its appeal to writers, journalists, and creators seeking greater control over their content and direct monetization through subscriptions.
The company takes a 10% cut of subscription revenue, a model that has attracted high-profile publishers and journalists transitioning from traditional media.
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In response to creator demand, Substack is exploring new monetization avenues, including native advertising and content bundling, marking a shift from its earlier ad-averse stance. Additionally, the company recently launched a $20 million fund to attract creators from other platforms, signaling its ambition to compete in the broader creator economy.
With a valuation nearly 70% higher than its 2021 figure of $650 million, Substack is positioning itself as a key player in the evolving media landscape, offering creators ownership and audiences agency. As co-founder Hamish McKenzie noted, “We’ve raised $100 million that we will put to work for creators and their audiences… Now we go big.”
Author: Slava Vasipenok
Founder and CEO of QUASA (quasa.io) - Daily insights on Web3, AI, Crypto, and Freelance. Stay updated on finance, technology trends, and creator tools - with sources and real value.
Innovative entrepreneur with over 20 years of experience in IT, fintech, and blockchain. Specializes in decentralized solutions for freelancing, helping to overcome the barriers of traditional finance, especially in developing regions.
This is not financial or investment advice. Always do your own research (DYOR).
