Investors are eager for the Patreon IPO. The leading content monetization platform could be hitting the public markets sometime in 2022 or 2023. So, what’s the latest news on Patreon stock?
Patreon IPO: About the Platform
Patron is a subscription-based service that connects content creators with their fans. It allows content creators to acquire, manage and entertain paying patrons with its platform tools. The service functions as a sort of middleman between content creators and their fans.
Content creators in all spheres of entertainment have also been able to monetize their content with this platform. Creating subscription-based offerings enables creators to interact with their fans casually and often while making a profit.
In order to make money, the company takes a cut of what creators make using its platform, usually in the form of a flat rate. Depending on which of the company’s services a creator uses, Patreon generally charges them 5-12%. There are Lite, Pro and Premium services available.
Patreon is a long-time player for content creators dating back to 2013. Moreover, the company is facing questions about the Patreon IPO after it surged in popularity during COVID-19 when people found themselves having to find new sources of entertainment.
Patreon Capitalizes on Pandemic
While the company was popular before 2020, the pandemic boosted its business. During the COVID-19 outbreak, creators faced pressure to push more of their work online. As a result, Patreon saw a record boost in popularity.
A number of new players entered the creator monetization space during the pandemic. However, Patreon has already built an extensive network over the past nine years. More than 50,000 creators signed up for Patreon during the month of March in 2020, Patreon wrote in a blog post.
Moreover, people were stuck at home for most of the day due to the pandemic. As a result, many people have had to come up with new ways to pass the time. And the company plans to keep up with its recent user growth. The company’s CPO announced the company will double in size in 2022. So, what does this mean for the company’s finances?
Patreon IPO: A Look at the Finances
As of 2022, Patreon has raised over $413 million in total funding. The company’s most recent funding round took place in April 2021. Tiger Global led the $155 million funding round and landed Patreon a $4 billion business valuation.
The funding round also received participation from Woodline Partners and previous investors Wellington Management, Lone Pine Capital, New Enterprise Associates, Glade Brook Capital and DFJ Growth.
Compared to Patreon’s previous round, its valuation has more than tripled. Patreon had previously raised $90 million in funding, which valued the company at $1.2 billion.
Moreover, the company boasts promising financial numbers for its creators. As of November 2020, Patreon’s creators had collectively earned $2 billion from their fans. Moreover, by December 2021, earnings spiked to $3.5 billion.
The tripled valuation and earnings signal growth from the company. Moreover, the company’s funding rounds are similar to other companies that took the plunge to go public. So, what does this mean for the Patreon IPO?
When Will Patreon IPO?
There have been no official announcements for the Patreon IPO. The company has yet to file paperwork with the Securities and Exchange Commission (SEC) to begin the IPO process. However, there were rumors of the company making plans to go public in 2021. In response, Patreon’s CFO Kerri Pollard said…
I think all options are on the table at this point in time, and the IPO is definitely one of them, but right now we don’t have any immediate plans.
So far, there have been no further announcements for the Patreon IPO. So, investors shouldn’t hold their breath for news of the public debut anytime soon. However, when the company takes the plunge into the public market, Patreon stock will likely list on the New York Stock Exchange or Nasdaq exchange.
Stay tuned for the latest news on the company’s public debut. As always, make sure to research before you invest. IPOs can be volatile for the first few months. And share prices can change quickly. But if IPO investing interests you, check out our top recent IPOs and our IPO calendar. We update it daily to give you the latest news on upcoming and filed IPOs.
Aimee Bohn graduated from the College of Business and Economics at Towson University. Her background in marketing research helps her uncover valuable trends. Over the past year, her primary focus has been researching IPOs and other trends.