Substack is launching a community fundraising round in which writers can invest in and own a stake in the company.
The company announced on Tuesday that beginning today, writers can make an investment of at least $100 through Substack’s Wefunder page.
Substack’s funding goal, according to the page, is $2 million.
Readers have paid writers more than $300 million through Substack, and the platform now has more than 35 million active subscriptions, including two million paid subscriptions, according to the company.
Substack also revealed that over 17,000 writers earn money on the platform, with the top ten publishers earning more than $25 million per year.
“As Substack grows to accommodate more writers, podcasters, videomakers, musicians, scientists—and culture-makers of all kinds—we see a path to hundreds of millions of subscriptions and a significant cultural impact, which will in turn provide ample financial opportunity,” the company wrote.
“We are at the dawn of the era of the subscription network. This work will be ambitious and exciting, and it will be meaningful. We’d love to have you by our side as we build this new economic engine for culture together.” Substack added.
Potential investors should be aware that there is no guarantee that their money will be returned, and they should not invest in the community round unless they can afford to lose their entire investment.
According to the company’s Wefunder page, users can legally invest up to $2,200.
If the round is oversubscribed, Substack says it may not be able to accept all investments and may reduce individual investments, in which case users will be refunded the difference.
If the round is oversubscribed, Substack writers who have enabled paid subscriptions and paying subscribers will be prioritized.
The announcement of the new community fundraising round comes after the New York Times reported in May 2022 that Substack had abandoned efforts to raise a Series C round after discussions with potential investors about raising between $75 million to $100 million.