It seems like every week a new virtual tool emerges to help creatives get paid. Between super follows, NFTs, tipping platforms and more, it’s clear that the creative economy is booming. It’s no wonder that one of the earliest platforms to help creative’s get paid, Patreon, just announced its second capital raise of the last seven months.
The San Francisco-based e-commerce unicorn announced Wednesday that it raised $155 million in a round led by new investor Tiger Global Management. The Series F brings Patreon’s valuation to a whopping $4 billion, and the latest valuation number is nearly three times the size of its last. When the subscription-based service closed its Series E in September it was valued at $1.2 billion.
Patreon, founded in 2013, has nearly six million subscribers. Artists, musicians, game developers and more use Patreon to foster ongoing financial support from their fans online. The platform received an influx of new users during the pandemic as creatives were forced to find new ways to generate income in the wake of new lockdown measures and event cancellations.
The growing reception of Patreon matches that of other creator-based subscription platforms, like Substack, which announced last week that it closed on a $65 million Series B.
“When Sam and I started Patreon eight years ago, we were solving a clear problem: collapsing the gap between the impact that creators have in the world and their paychecks at the end of the month,” Jack Conte, co-founder and CEO of Patreon, said in a statement. “That world is quickly becoming a reality, and the emerging creative class is already scaling their dreams.”
Following the latest raise, Patreon plans to enhance its user experience on both the desktop and mobile iterations of its platform. The company also plans to use the additional capital to pursue strategic acquisitions and support its plans for international expansion.
“We’re starting with content and community capabilities, but over the next decade we’re setting out to build the creator infrastructure that supports a Second Renaissance,” Conte continued.
Last year Patreon introduced several new languages, currencies and messaging functionalities to its platform. As the company continues to scale, it plans to expand the size of its team. The company is now hiring for dozens of open roles across its engineering, marketing and operations teams.
Patreon has raised $413.3 million in venture capital financing to date, according to Crunchbase.
Additional investors Woodline Partners, Wellington Management and Lone Pine Capital participated in the round, among others.