If you watch a video from your favourite content creator, you’ve most likely heard a plug about their Patreon account. The platform has been growing steadily in recent years and gained an even higher profile during the pandemic as content creators looked for more avenues in order to generate income during a chaotic 12 months.
Attracting more creators has also yielded dividends for Patreon too, with the platform now valued at $4 billion following a recent funding round of $155 million led by Tiger Global. According to the Wall Street Journal (paywall), other notable investors in the funding round include Woodline Partners, Wellington Management, Lone Pine Capital and New Enterprise Associates.
As such, the now eight-year old company has more than tripled its valuation from September of last year, when it was valued at $1.2 billion after a funding round of $90 million.
It is unclear what figure its network of creators is at currently, but in the first few weeks of COVID-19 being classified a pandemic early last year, it had garnered 30 000 new sign ups, serving as proof that many people turned to it as an additional avenue for income.
The platform also brings with it some independence. We have seen for example the All Gas No Brakes, now Channel 5, move to Patreon following its falling out with Doing Things Media. It means less content will be placed online for free, but also ensures that creators can continue to make the content that their followers or supporters enjoy.
With this latest funding round yielding a massive valuation increase, it will be interesting to see what the next one results in.