Substack is giving creators 20 million reasons to migrate to its platform. The newsletter distributor has announced a Creator Accelerator Fund that sets aside $20 million for creators who promise to relocate their “paid-subscription audience.”
A blog post from Substack describes the fund as a measure of consistency on an increasingly unpredictable internet. Substack differs from some other newsletter platforms (including beehiiv) because it takes a 10% cut of revenue from the periodicals it delivers. To convince creators to accept that surcharge, Substack is sweetening the pot with more upfront payments.
“We established this fund because we’ve seen creators who specialize in video, audio, and text expand their audience, revenue, and influence on Substack, where the platform’s network effects amplify the quality and impact of the work they’re doing,” reads the post. “The Substack app, which has millions of weekly active users, is the single largest source of growth for publishers on the platform, accounting for more than 50% of all new subscriptions and 30% of paid subscriptions.”
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The Creator Accelerator Fund also serves as a response to the increasing competition in the newsletter space. As beehiiv raises millions, it is launching creator-friendly programs like the beehiiv Media Collective, further empowering journalists, podcasters, and other independent personalities.
For Substack, it may be simpler to shift its target audience rather than play catch-up with beehiiv — and that’s where TikTok comes in. The app’s uncertain future has opened the door for other platforms to appeal to short-form video creators. Substack is one of those potential TikTok successors. Its recently launched live video product makes it a suitable home for creators who are looking for a new home for their news updates. Fittingly, leading TikTok newsperson V Spehar of Under The Desk News is named in the blog post as one creator who has “successfully migrated to Substack.”
If Donald Trump is able to keep TikTok running in the United States, Substack’s $20 million wager might not click with the TikTok crowd. But in the mean time, if you’d like to apply for a piece of the Creator Accelerator Fund, you can do so right here.
