The Patreon club platform has raised $90 million in new funds, Variety reported.
The San Francisco-based collective investment company, which allows enthusiasts to pay artists for their work, said with the new money, it was valued at $1. 2 billion. Patreon said he planned to use the investment to expand around the world and his team for developers. .
In the video ad for the news, former YouTube musician Jack Conte, Patreon’s CEO, said he had kept the company’s finances personal until now because he didn’t need Patreon’s.
“I then sought to communicate about our creatorsArray . . . it’s a vital moment and I need to give it the gravity it deserves,” he said. “This point of trust in Patreon is an evidenceArray . . . that the global is changing. The stigma of the hungry artist will disappear.
In 2013, Conte was looking for a way to deserve credit from the millions of people who enjoyed his videos, but his bank account didn’t have much to show, according to Patreon, so he created an online page that would allow enthusiasts to pay He presented the concept to his schoolroommate and Patreon co-founder Sam Yam. They both presented the site in six weeks.
Today, the startup has 6 million subscribers for more than 200,000 artists who pay commissions of between five and 12% according to the month. Collectively, the artists earned $1 billion fans, according to the company.
“In the future, creators around the world will earn at least $1 billion a year in Patreon,” Conte said in a blog post.
The new investment will aim to get creators to expand their audience with study tools, continue the company’s global expansion by supporting more currencies, and “improve the visitor experience,” Conte wrote.
Conte hopes the company will update its messaging features to allow consumers to talk to each other, as well as more opportunities to “physically show a creator in the form of more merchandise,” according to Conte.
The most recent finance circular co-directed through New Enterprise Associates, The Maryland-based venture capital firm, and Boston’s Wellington Management with new investor Lone Pine Capital, a Connecticut-based hedge fund.
Earlier this year, Wyatt Jenkins, Patreon’s senior vice president, told PYMNTS that the company is much bigger than the competition.
“At Patreon, you bring 85 [to] 90 [of consumer funds] to the house depending on the plan you choose,” he says. “Any other channel, like Spotify, YouTube or Facebook, earns fractions of a penny. “
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