Mighty Networks Raises $50M for Creator Economy Platform

Mighty Networks Secures $50 Million in Series B Funding

Mighty Networks, a platform focused on empowering creators and brands with dedicated community spaces, has successfully completed a $50 million Series B funding round. The round was spearheaded by Owl Ventures.

Investment Details

Ziff Capital Partners and LionTree Partners contributed to the financing, alongside existing investors including Intel Capital, Marie Forleo, Gretchen Rubin, Dan Rosensweig, Reid Hoffman, BBG Ventures, and Lucas Venture Group. Since its establishment in 2017, Palo Alto-based Mighty Networks has now raised a total of $67 million.

A Proven Leader in Community Building

Gina Bianchini, founder and CEO of Mighty Networks, along with co-founders Tim Herby and Thomas Aaron, brings significant experience in fostering online communities. Prior to this venture, she served as CEO and co-founder of Ning, guiding its growth to three million networks and approximately 100 million users within three years.

Building a "Creator Middle Class"

Bianchini envisions Mighty Networks as a catalyst for building a “creator middle class.” This will be achieved through community memberships, events, and live online courses.

She explained to TechCrunch that the platform allows individuals to establish communities in a manner similar to creating e-commerce stores. Where Shopify revolutionized e-commerce, Mighty Networks aims to do the same for digital subscriptions, emphasizing the value of shared learning and collaboration over content alone.

Product Offerings: Business Plan and Mighty Pro

The company’s Business Plan is designed for emerging creators, providing a streamlined pathway to launch digital subscriptions. Meanwhile, established brands and creators can leverage the Mighty Pro plan to access all of Mighty Networks’ features within their own branded iOS, iPad, and Android applications.

Impressive Growth Metrics

Operating as a SaaS business, Mighty Networks has demonstrated substantial growth. In 2020, the company’s Annual Recurring Revenue (ARR) increased by “2.5x,” accompanied by a 200% rise in annual customer acquisition. Customers are defined as creators utilizing the platform for their communities, courses, and events.

Furthermore, the company experienced a 400% annual growth in payments, specifically in subscriptions and course sales facilitated by creators and brands.

The Impact of the Pandemic and Live Events

The pandemic proved beneficial for the business, particularly with the introduction of live events last year. This allowed for a rapid transition to online platforms for various businesses.

Bianchini noted that as the world recovers, these businesses can now utilize the platform’s features for discovering local members, organizing events, and creating groups, all accessible through both web and mobile applications.

Success Doesn't Require Massive Followings

Mighty Networks aims to redefine creator success, demonstrating that large follower counts (like those on TikTok) aren’t essential. A creator securing subscriptions from just 30 individuals at $1,000 annually can generate $30,000 in revenue – a significant income, supporting the concept of a “creator middle class.”

A Growing User Base

Currently, Mighty Networks boasts a community of over 10,000 paying creators, brands, and coaches. Notable users include YouTube personality Adriene Mishler, Xprize and Singularity University founder Peter Diamandis, author Luvvie Ajayi Jones, comedian Amanda Seales, Girlboss founder Sophia Amoruso, the TED conference, and wellness scheduling platform MINDBODY.

The Future of the Creator Economy

Bianchini emphasizes that content alone is insufficient for a sustainable creator economy. She argues against the current model where creators rely on large tech platforms, constantly produce content, and receive minimal compensation.

Instead, she advocates for creators to own their communities online, fostering connections and delivering tangible results and transformation to their members.

Owl Ventures' Perspective

Amit Patel, Managing Director at Owl Ventures, expressed his firm’s admiration for Mighty Networks even before formal discussions. He highlighted the platform’s loyal user base and the demonstrated success of creators building paid communities and courses with as few as 30 members.

Patel stated that Owl Ventures is eager to contribute to unlocking the potential of the “creator middle class” for a million more creators.

Future Plans

The newly acquired capital will be allocated to product development, encompassing various media types, payment options, and expansion into new markets.

This month, Pico, a New York-based startup focused on empowering online creators and media companies, announced an upgraded platform and secured $6.5 million in funding. Pico is developing what it envisions as an operating system for the creator market.