Updated:
Substack Inc.
Substack was founded in 2017 by Chris Best, Hamish McKenzie, and Jairaj Sethi, a team with backgrounds at Kik Messenger and Paddle8.
Substack Inc.
Substack was founded in 2017 by Chris Best, Hamish McKenzie, and Jairaj Sethi, a team with backgrounds at Kik Messenger and Paddle8. The company emerged as a direct monetization platform for newsletter writers, offering tools for publishing and subscription management while taking a 10% cut of subscription revenue. Its wealth origin traces to venture capital rather than a single fortune, with the firm structured as a for-profit Delaware corporation. Substack's strategy centers on enabling independent media through a subscription-based model, competing with platforms like Patreon and Medium. The company's asset-class mix is narrow: it operates a two-sided marketplace connecting writers to readers, with an embedded payment processing system handling credit card transactions and tax compliance. Confirmed investors include Andreessen Horowitz, Y Combinator, and the crypto-focused fund Paradigm, with the Series B round in 2021 totaling $65M. Geographic footprint is primarily North American, with writers in over 100 countries but a concentration of top earners in the US and Europe. The company has raised approximately $82M in total disclosed funding from venture capital firms (per SEC filings, 2021). Team size is estimated at roughly 150 employees across engineering, product, and operations. The firm maintains no separate philanthropic foundation, though the Substack platform has been used by individual writers to raise money for causes. A notable event from the last 24 months: in October 2024, Substack launched 'Substack Video' expanding beyond written newsletters into short-form video content (per TechCrunch, October 2024). Substack's structural differentiator is its 'pay-per-subscriber' model that bypasses traditional advertising and platform algorithms, giving writers full ownership of their audience and data. The company also operates a crypto-based payments experiment, 'Bitcoin BTC payments via Lightning Network,' positioning itself at the intersection of media and decentralized finance — an unusual move for a newsletter platform.
General information
Firm type
Venture Capital Firm
Year founded
2017
AUM
Undisclosed
Location
Region
North America
Country
United States
City
San Francisco
Corporate office
San Francisco, CA, United States
Principals
Chris Best
CEO & Co-Founder
Hamish McKenzie
Co-Founder
Jairaj Sethi
CTO & Co-Founder
Sector focus
Frequently asked questions
Who leads Substack's investment decisions?
Chris Best, CEO and co-founder, leads the company's strategic direction. Investment decisions on the venture side are made by its institutional backers, such as Andreessen Horowitz and Y Combinator, rather than by Substack's internal team.
Is Substack a single family office or a venture firm?
Substack is neither a family office nor a venture firm; it is a venture-backed technology company that operates a subscription newsletter platform. Its investors include traditional venture capital firms.
How does Substack generate revenue?
Substack takes a 10% cut of subscription revenue from writers who use its platform. The company also processes payments via Stripe, handling fees for credit card transactions. In 2024, it began testing cryptocurrency payments via Bitcoin's Lightning Network.
What investment stages does Substack target as a platform?
Substack does not make investments; it hosts writers at all stages of their careers, from newcomers to established journalists. The company provides tools for monetization but does not take equity in writers' businesses.
Does Substack participate in direct deals or fund commitments?
No. Substack is an operating company, not an investment firm. It does not deploy capital into external funds or make direct equity investments.
Which sectors does Substack explicitly avoid?
Substack has not publicly stated any sectors it avoids. However, as a platform, it enforces content guidelines that prohibit hate speech, spam, and illegal content across all categories.
How is Substack related to its venture investors?
Substack's venture investors, such as Andreessen Horowitz and Y Combinator, hold equity in the company but have no operational control. The company remains independent and founder-led.
Profile maintained by Altss using OSINT (open-source intelligence), regulatory filings, licensed data partners, and verified direct submissions. Read the methodology. Last updated: . Continuous refresh with full update cycles at least every 30 days.
Need institutional-grade insight on family offices?
Altss delivers:
Prefer a guided tour?
We’ll walk you through: