Artists have put more emphasis on songs and videos during the pandemic: Music publicist
More than 200,000 artists and entertainers use Patreon to connect with and raise money from fans. That momentum has helped Patreon Inc. raise some money of its own.
A new investment in Patreon valued the business at US$4 billion, the company said Wednesday. The valuation is more than triple what it was six months ago, and the latest financing brought in US$155 million for the company.
The round was led by Tiger Global Management, according to the Wall Street Journal, which first reported on it.
Patreon was founded in 2013 during a boom in crowdfunding. Artists and businesses were using Kickstarter and Indiegogo to raise hundreds of millions of dollars from customers to get new ventures off the ground. Patreon allows fans to pay a monthly fee to their favorite musicians, podcasters or YouTube stars in exchange for exclusive content.
The coronavirus pandemic accelerated Patreon’s business. With live concerts and art exhibits on hold, artists have sought new ways to reach fans and finance their craft. Venture capitalists turned Patreon into a unicorn startup in September with a valuation of US$1.2 billion. Creators on the platform now earn more than US$100 million a month from some 7 million users, the company said.