Investment of $100 Million in Substack by Chernin Group, BOND, Skims CEO, and Others
Substack, the popular platform for independent creators and publishers, has announced a successful Series C funding round, valuing the company at approximately $1.1 billion. The round was led by BOND and TCG, with participation from VC firm Andreessen Horowitz, Rich Paul, CEO of Klutch Sports Group, and Jens Grede, CEO of Skims, among others [1].
With this new funding, Substack plans to enhance its platform's tools and features, aiming to expand its suite of products beyond newsletters. The company's long-term ambition is to build a robust media network for creators [1][3].
Substack's current business strategy revolves around a subscription-based model, taking a 10% cut of earnings from creators who charge for access to their newsletters, podcasts, or video content. This model allows creators to build direct relationships with their audiences and generate revenue through subscriptions [1][2]. The platform also offers a mobile app with features like live video, chat, and a short-form feed called Notes, which has millions of weekly users, contributing to new creator discovery and subscriber growth [1].
Substack has gained traction as a platform for independent creators, providing them with an opportunity to monetize their content, similar to Patreon. The platform hosts a growing base of creators transitioning from other platforms due to uncertainty around social media algorithms and TikTok restrictions [1]. Popular Substack newsletters include those from Heather Cox Richardson, Marc Cenedella, Robert Reich, Dan Rather, MeidasTouch, The Bulwark, and Andy Borowitz.
Looking ahead, Substack is warming up to incorporating advertising into its business model, marking a shift from its previous stance against ad-led monetization [2][4]. This move is seen as a "natural evolution" of the platform and could provide brands with access to highly engaged and intentional audiences.
Substack's co-founders, Chris Best, Hamish McKenzie, and Jairaj Sethi, believe that they are living through a time of rapid technological change. They are building an economic engine to power the cultural ecosystem, with creators making money by serving their communities [3]. The challenges ahead are real, according to the co-founders, but they are thrilled to partner with the new investors and face them head-on [3].
As of March 2025, Substack writers and creators have amassed over 5 million paid subscriptions, up from 2 million in 2023. The company currently has just over 100 employees, according to a rep [1]. Substack aims to prove that a media app can be an escape from the doomscroll, providing users with a fun and rewarding media platform [1].
The addition of BOND partner Mood Rowghani to Substack's board is expected to bring valuable insights and expertise to the company as it navigates its growth and expansion [1]. Substack was founded in San Francisco in 2017.
References: [1] Substack. (2025). Substack secures $100 million in Series C funding, doubling down on the Substack app to help audiences reclaim their attention and connect with creators. Retrieved from https://substack.com/press/substack-series-c [2] The Information. (2025). Substack is warming up to advertising. Retrieved from https://www.theinformation.com/articles/substack-is-warming-up-to-advertising [3] TechCrunch. (2025). Substack raises $100 million in Series C funding, led by BOND and TCG. Retrieved from https://techcrunch.com/2025/03/01/substack-raises-100-million-in-series-c-funding-led-by-bond-and-tcg/ [4] Axios. (2025). Substack is getting ready to sell ads. Retrieved from https://www.axios.com/2025/03/01/substack-ads-advertising-business-model-media-app
Substack aims to utilize the funds from the Series C funding round to advance the technology of its platform, enhancing tools and features to expand its product suite beyond newsletters. The company envisions building a technology-driven media network for creators, fostering investment opportunities in the business of finance.
With the incorporation of advertising into its business model, Substack aspires to attract brands seeking access to intentional and engaged audiences, furthering its potential for technology-driven investment and growth.
