Sep 19, 2017

Patreon raises $60 million because fans still pay for content

Courtesy of Patreon

An art industry startup is doing what many media companies believe is impossible: Attracting consumers who want to pay for content. Patreon, which lets artists charge fees for their work, today announced that it has raised $60 million in a new funding round led by Thrive Capital.

How it works: Borrowing from the idea of patronage, Patreon's creators can collect membership fees from their fans (or patrons) in exchange for access to exclusive art or content. This year, the company will pay out $150 million in earnings to its 50,000 creators.

Why it matters: "I think we're seeing a shift in the entire ecosystem where people are realizing that they're sick of clickbait," Carlos Cabrera, Patreon's VP of data science and operations, told Axios. "The current systems are really bad at promoting great stuff."

  • Patreon co-founder and CEO Jack Conte is intimately acquainted with the challenges artists face—he's a musician himself, performing as one half of music duo Pomplamoose.
  • And yet, changing consumers' mindset is still a big challenge for Patreon, said Cabrera.

Deal details: Index Ventures, CRV, Freestyle, and DFJ are also participating in the round, which brings Patreon's total funding to $100 million. Last week, TechCrunch reported that Patreon is raising funding at a $450 million valuation, although Axios is told that this isn't accurate.

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World coronavirus updates

Data: The Center for Systems Science and Engineering at Johns Hopkins; Map: Axios Visuals

Countries where novel coronavirus cases are falling may be hit with a "second peak" if they relax restrictions too soon, World Health Organization emergencies chief Mike Ryan warned during a briefing Monday. "We're still very much in a phase where the disease is actually on the way up," he added.

By the numbers: Almost 5.5 million people have tested positive for the virus as of Monday, and more than 2.2 million have recovered. The U.S. has reported the most cases in the world (over 1.6 million from 14.6 million tests). The U.K. is reporting over 36,900 deaths from the coronavirus — the most fatalities outside the U.S.

Coronavirus dashboard

Illustration: Aïda Amer/Axios

  1. Global: Total confirmed cases as of 3 a.m. ET: 5,498,849 — Total deaths: 346,306 — Total recoveries — 2,233,180Map.
  2. U.S.: Total confirmed cases as of 3 a.m. ET: 1,662,768 — Total deaths: 98,223 — Total recoveries: 379,157 — Total tested: 14,604,942Map.
  3. World: Italy reports lowest number of new cases since February — Ireland reports no new coronavirus deaths on Monday for the first time since March 21 — WHO suspends trial of hydroxychloroquine over safety concerns.
  4. 2020: Trump threatens to move Republican convention from North Carolina — Joe Biden makes first public appearance in two months.
  5. Public health: Officials are urging Americans to wear masks over Memorial Day.
  6. Economy: New York stock exchange to reopen its floor on Tuesday — White House economic adviser Kevin Hassett says it's possible the unemployment rate could still be in double digits by November's election — Charities refocus their efforts to fill gaps left by government.
  7. What should I do? Hydroxychloroquine questions answeredTraveling, asthma, dishes, disinfectants and being contagiousMasks, lending books and self-isolatingExercise, laundry, what counts as soap — Pets, moving and personal healthAnswers about the virus from Axios expertsWhat to know about social distancingHow to minimize your risk.
  8. Other resources: CDC on how to avoid the virus, what to do if you get it, the right mask to wear.

Subscribe to Mike Allen's Axios AM to follow our coronavirus coverage each morning from your inbox.

Updated 58 mins ago - Politics & Policy

LATAM Airlines files for U.S. chapter 11 bankruptcy

A LATAM air attendant aboard one of the company's planes in March. Photo: Kike Calvo/Universal Images Group via Getty Images

LATAM Airlines Group SA said in a statement early Tuesday the firm and its affiliates in in the United States, Chile, Peru, Colombia and Ecuador have filed for Chapter 11 bankruptcy protection in the U.S.

Why it matters: Latam is Latin America's largest airline and its shareholders include Delta Air Lines. CEO Roberto Alvo noted in the statement the coronavirus pandemic has had a huge impact on the airline industry.