Patreon in big financial investing round

[superblonde]

Patreon Tops $1 Billion Valuation as Pandemic Brings a Surge in Creators to Platform

New Enterprise Associates and Wellington Management led the $90 million funding round

By Maria Armental
Sept. 1, 2020 7:40 pm ET

Membership platform Patreon Inc., which enables musicians and other creators to connect with fans, has raised $90 million from investors, bringing its value to more than $1.2 billion, company officials said.

Patreon was last valued at $660 million after a funding round last year, according to PitchBook Data Inc.

New Enterprise Associates and Wellington Management Co. led the latest investment round, and NEA will gain an observer seat on the company’s board. Patreon executives say the pandemic is driving a membership surge, with creators looking for a stable source of income and a creative outlet and fans seeking entertainment and a way to help them—not unlike the demand boost that has helped a range of technology companies in recent months.

Jack Conte and Sam Yam, one-time Stanford University roommates, founded Patreon in 2013 to build a company that would allow writers, musicians and other creators to get paid by their fans, who in turn get exclusive access to content and a behind-the-scenes look into their creative journey. The San Francisco-based company has grown to more than 200,000 creators supported by more than 6 million fans, the company said.

“The world is different now,” said Mr. Conte, Patreon’s chief executive, comparing it to the Renaissance period when a network of benefactors supported artists.

Could be good or bad news. If the management is not good, artists are the ones who will suffer. Patreon has bizarre limitations which they don’t seem to want to fix, it’s still mostly like a ‘blog’ format. IMHO better to use something else, especially since Patreon purposely puts up a wall between fans and creators (so they can charge a fee to work around the artificial wall). Theres a couple other services which allow direct payment to artists whereas Patreon refuses to add that because it wants more “sign ups”.

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[rorygfan]

What a dumb investment, imo. What real barrier to entry other than a customer list and goodwill?. Am I missing something?Isn’t this another overvalued, fairly easily duplicated VC ripoff wannabe?, wait till they shill it up further and cash out. Retail will be left holding the bag. Other funding “patron” competitors are available that do not censor people too btw.

I am waiting when future “platform only” Uber and AirBnB’s clones go public and their clones to carve out market share on them also. California forcing Uber to pay drivers like employees, and AirBnb “super hosts” who speculated with cheap financing buying up several properties and now soon to be bankrupt- its all laughable. None of these are the anywhere near the next Amazon unless they expand and diversify to say Trucking in the case of Uber or airBnB renting lawnmowers and houseboats.

Its incredible really why these people still buy when P/E’s say on Tesla are 1000 too or Netflix, lots of gamblers and retail investors are going to wake up broke. On August 3-4 Bezos sold $3 Billion of Amzn btw, yes with a B of his shares in this crazy time, good for him to cash out in this environment. Dumb Retail investors though at this point putting cash into this market full of other zombie companies and stupid monkey-see-monkey-do behavior well, I smirk. The only people making money are insiders and traders.

Apple’s Cook bought and sold 560,000 options late August to take advantage of the run up and pocket $148 million. 3 of the FAANG stocks doubled in value since March 16-19. While I don’t hope a correction wipes everybody out but it is coming. Interest rates stupid ridiculous and no where to go unless negative like EU. Fed printing money and giving it away…

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