Patreon Valuation Triples to $4 Billion

Patreon Achieves $4 Billion Valuation in New Funding Round

Patreon’s company valuation has increased threefold, reaching $4 billion, following a $155 million funding round. This information was confirmed by the company to The Wall Street Journal on Tuesday.

Growth Fueled by the Creator Economy

The platform, which facilitates direct financial support for artists from their fan base, experienced heightened visibility during the COVID-19 pandemic. Many creators transitioned a larger portion of their work to online platforms as a result.

While the creator payments sector has seen an influx of new companies recently, Patreon, established eight years ago, has already cultivated a substantial network.

In a blog post published last year, Patreon reported that over 30,000 creators joined the platform within the initial weeks of March 2020.

Revenue Model and Investment Details

Patreon generates revenue by charging creators a fee ranging from 5% to 12%, contingent upon the specific services utilized.

Previously, the company completed a $90 million funding round in September, which assigned a valuation of $1.2 billion.

Investors Participating in the Round

Additional investors participating in this latest funding round include:

• Woodline Partners
• Wellington Management
• Lone Pine Capital
• New Enterprise Associates

These firms joined Tiger Global in leading the investment, demonstrating confidence in Patreon’s continued growth potential.