Substack Company Business Model and Operations

Substack is a platform that allows writers to create and sell their own newsletters directly to their subscribers. The company was founded in 2017 by Chris Best and Hamish McKenzie.

Substack's business model is based on a subscription-based service, where writers can create and sell their own newsletters to readers who pay a monthly or annual fee. This model allows writers to maintain ownership and control over their content and audience.

Writers on Substack can set their own subscription prices and offer exclusive content to their subscribers. This flexibility allows writers to experiment with different pricing strategies and content offerings to find what works best for their audience.

Substack takes a 10% commission on all revenue earned by writers on the platform, making it a relatively low-cost option for writers to monetize their content.

Curious to learn more? Check out: Top Content Marketing Companies

The Substack company was founded by Chris Best, Jairaj Sethi, and Hamish McKenzie in 2017. They brought together diverse expertise to develop a platform designed to empower writers.

The initial concept for Substack was inspired by the success of Ben Thompson's Stratechery, which demonstrated the viability of reader-funded newsletters. This model provided a clear path for Substack's mission to offer writers direct monetization options and control over their content.

The founders aimed to create a space where creators could thrive independently. They began working on a prototype in October 2017, which eventually led to the launch of Substack.

The founders retain ownership of the company. They are joined by key institutional investors, including Andreessen Horowitz and Y Combinator. These investors have played a significant role in shaping the company's growth and valuation.

Here are some key facts about Substack's ownership:

Substack's ownership has shifted through several funding rounds since its inception. The company has secured a total of $89.5 million across five funding rounds. These funding rounds have been pivotal in shaping the company's growth trajectory.

Substack has raised a total of $190M in funding over 6 rounds, with its first funding round taking place on February 8, 2018. This significant investment has helped the company grow and expand its services.

Substack's latest funding round was a Series C round on July 17, 2025, which brought in $100M. This round was led by Bond Capital and TCG Ventures, with 4 investors participating. The company now has a post-money valuation of $77,082,190.

Substack has made several strategic investments in other companies, including Yeager.ai, Animus, and Threedium. These investments were made in 2024 and 2023, and demonstrate the company's commitment to supporting innovative startups.

Substack has secured a total funding of $190M across 6 rounds. Its first funding round was on February 8, 2018.

Substack's latest funding round was a Series C round on July 17, 2025, with a funding amount of $100M. This round was led by Bond Capital and TCG Ventures.

Substack has 25 institutional investors, including a16z, Zhen Fund, and Fifty Years. It also has 3 Angel Investors, but their names are not specified.

Here's a breakdown of Substack's funding rounds:

Substack has made some notable investments and acquisitions in recent years. One of the most recent investments was in Yeager.ai, a company founded in 2023, located in Doral, United States.

Substack invested in Yeager.ai on August 21, 2024. This investment was not the only one, as Substack has also invested in Animus, a company founded in 2017, located in San Carlos, United States.

The investment in Animus took place on November 1, 2023. Another company that received investment from Substack is Threedium, a company also founded in 2017, but located in London, United Kingdom.

The investment in Threedium occurred on October 25, 2023. These investments highlight Substack's commitment to supporting innovative companies and technologies.

Here are the details of Substack's investments and acquisitions:

Substack Inc., the parent company of Substack, was incorporated on November 28, 2017. Substack Inc. has a revenue of $1.45M as of December 31, 2021.

Substack has a presence in the United States, where it is an active legal entity. The company also has a subsidiary, SUBSTACK INC., which was incorporated on May 24, 2022. Unfortunately, the revenue and employee count for this subsidiary are not publicly available.

Substack's board of directors is primarily composed of its co-founders, ensuring their continued control. The founders' roles as CEO and Co-Founders highlight their central influence on the Substack company. As a private company, Substack's ownership structure and voting power details are not publicly available.

The table below lists the legal entities associated with Substack:

Substack has several legal entities associated with it. One of these entities is Substack Inc., which was incorporated on November 28, 2017, in the United States. This entity had a revenue of $1.45 million as of December 31, 2021.

Another entity is SUBSTACK INC., also incorporated in the United States, but on May 24, 2022. The revenue for this entity is not publicly available.

Substack also has an entity in India, Transfin Media Private Limited, which was incorporated on February 8, 2017. This entity had a revenue of $339 as of March 31, 2021.

Here's a breakdown of the legal entities associated with Substack:

The board of directors at Substack is primarily composed of its co-founders, ensuring their continued control. Chris Best serves as CEO, while Hamish McKenzie and Jairaj Sethi hold the roles of Co-Founder and Co-Founder & CTO, respectively.

The founders' direct involvement in key leadership roles indicates their significant influence over the strategic direction of the Substack platform.

The current board of directors is as follows:

As a private company, Substack's ownership structure and voting power details are not publicly available.

Substack offers a range of features that make it easy to create and manage your own newsletter. With a user-friendly interface, you can start writing and sending newsletters in no time, even if you don't have technical expertise.

Substack's customization options allow you to personalize your newsletter's appearance, integrate personal branding, and use custom domains. This means you can create a professional-looking newsletter that reflects your unique style and tone.

See what others are reading: Substack Email Newsletter

Substack's subscription management system is a standout feature, allowing you to offer both free and paid subscriptions and monetize your content. This enables you to build a sustainable income stream and connect directly with your audience.

Here are some key features of Substack's subscription management system:

Substack's platform is designed to make it easy to create and manage your own newsletter, with no upfront cost or technical expertise required. This has contributed to a surge in independent publishing and the broader creator economy.

Substack offers customization options for those who want to personalize their newsletters. Creators can customize their newsletter's appearance, integrate personal branding, and use custom domains.

You can tailor your newsletter to match your unique style and voice. With Substack, you have the flexibility to make your newsletter stand out and reflect your personal brand.

Custom domains allow you to use your own website's URL for your newsletter, giving it a professional look and feel. This feature is especially useful for established authors or media organizations.

Worth a look: How to Use Substack

Here are some key customization options available on Substack:

These customization options can help you build a strong brand and connect with your audience on a deeper level. By making your newsletter more personalized, you can increase engagement and loyalty among your subscribers.

Mailchimp offers more complex marketing automation tools, making it a great option for those who need to manage multiple marketing campaigns at once. This means you can create automated workflows to send targeted emails to specific segments of your audience.

Mailchimp is broader in its focus, catering to various marketing needs, from email marketing to e-commerce integrations. Whether you're a small business or an e-commerce giant, Mailchimp has the features to help you succeed.

If you're looking to monetize your email list, Mailchimp requires integration with third-party services, which can be a bit more complicated than Substack's built-in paid subscription features. However, this also gives you more flexibility to choose the monetization tools that work best for your business.

Here's a quick rundown of Mailchimp's key features:

Ghost is an open-source platform that allows for more customization options and integrations. This means you have complete control over how your website looks and functions.

Ghost offers more advanced customization options than Substack, which focuses on simplicity and ease of use. This is a great option for those who want to personalize their website and add unique features.

One of the benefits of Ghost is that it allows for self-hosting, giving you full control over your website's maintenance and hosting. This can be a bit more complex, but it also provides more flexibility.

Here are some key differences between Ghost and Substack:

Overall, Ghost is a great option for those who want more control over their website and are willing to put in the effort to customize it.

Substack's comment and discussion features enable direct interaction between writers and readers, fostering a more engaged and loyal subscriber base.

This direct interaction is a game-changer for writers who want to connect with their audience. The platform's community features are a key part of what sets it apart from other writing platforms.

Substack's community features allow writers to build a loyal following by engaging with their readers directly. This can lead to a more loyal and dedicated subscriber base.

By enabling direct interaction, Substack helps writers create a sense of community among their readers.

Related reading: Substack Features