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Substack on Thursday announced the launch of its Creator Accelerator Fund, which provides a $20 million funding guarantee aimed at helping creators grow their audience and move their paid subscribers from another subscription-based platform to Substack.
The company says the fund is designed to ensure that creators will retain all of their current revenue during their transition to Substack.
In contrast to other newsletter platforms like Ghost and Beehiiv, which charge monthly fees, Substack takes a 10% cut of a newsletter’s revenue. Substack’s new initiative addresses a key concern for creators who might be hesitant to switch platforms, as they often rely on their existing income streams for financial stability.
In addition to funding guarantees, the company is throwing in ongoing assistance from its partnerships team to help with the migration process and overall business strategy. Creators also get early access to beta features as members of Substack’s product lab.
The timing of the launch is also notable, given the recent turmoil among social media apps like TikTok and Instagram. Many TikTokers are uncertain of the app’s future in the U.S., whereas Instagram is facing backlash due to shifting policies that are perceived as harmful to users. To attract more creators, Substack recently introduced additional features to increase its competitiveness with social platforms, including new live video.
Today’s announcement follows a pilot program that involved select creators. Among the early recipients of financial guarantees from Substack are Sarah Stewart Holland and Beth Silvers, the hosts of Pantsuit Politics. They partnered with Substack and transitioned to the platform in October 2024. The company claims the Pantsuit Politics community has grown to over 18,000 subscribers on Substack, including thousands of paying members.
Substack is now accepting new applications, and interested creators apply online. Creators must live in the U.S. and have a monthly recurring revenue of at least $2,000 to qualify, the comapy notes.
Lauren covers media, streaming, apps and platforms at TechCrunch.
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