This article discusses the current state of Substack, a media and software platform that allows writers to publish and monetize their work. Here are some key points from the article:
Valuation: The company is reportedly valued at up to $1 billion, which would put its valuation at 100x current revenues.
Growth: Substack has grown rapidly, with estimated GMV of around $90 million in 2021 and likely over $100 million now. Its revenue run rate is over $10 million.
Spending: The company has spent heavily to accelerate its growth, raising concerns about whether it’s spending too much money to grow its market share.
Backers: a16z, which led Substack’s Series A and B funding rounds, hasn’t been as supportive of the company recently. Some speculate that this is because a16z overvalued Substack last year or has shifted focus to web3 investments.
Market Analysis: The article suggests that the media industry is undergoing significant changes, with venture capital firms taking a closer look at companies that are disrupting traditional media business models.
Some possible questions that can be derived from this article include:
- How sustainable is Substack’s growth rate?
- Is a16z’s lack of support for Substack due to overvaluation or a shift in investment focus?
- What implications do these developments have for the broader media and software industries?
Let me know if you would like me to expand on any of these questions!
