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.”
