In the years following the Mexican-American War, Beach’s consortium became The Associated Press. Though designed to solve a temporary problem, that structure would have enduring value. This chain of colts and stagecoaches propelled The Sun to new heights and illustrated the power and leverage media companies could produce by acting as a network: sharing infrastructure costs and collaborating rather than strictly competing. Together, they would split the costs together, they would benefit from faster information.īeach’s plan worked.
Rather than footing the cost himself, he invited four other New York newspapers to go in with him. Could The Sun afford to run a relay of horses for days, weeks, or even years?Įver the innovator – Beach had dabbled in gunpowder-powered balloons and steamships before turning to the publishing business – he devised a clever solution. Though Beach understood the appetite for updates from the battlefront and recognized the value strong coverage could bring to The Sun, he faced a conundrum: how could he acquire the best information quickly without incurring enormous costs? Though telegraphs had been invented, the nearest machine was in Richmond, Virginia, thousands of miles from the frontline. “Has the Mexican War terminated yet, and how? Are we beaten?” a teenage Emily Dickson wrote to her brother, expressing the nation’s inquisitorial mood. It was, after all, the story of the day, dominating public attention. In 1846, the publisher of The Sun, then one of New York City’s largest dailies, sought to deliver timely news about the Mexican-American War. That influence is difficult to compete with and could help make the company a true category creator. Important news, analysis, and narratives are shared on the platform, and some of the world’s most influential people use it to connect with their audiences. It isn’t easy to value something as intangible as cultural power, but Substack has it. Publications will take their subscriber lists elsewhere if Substack fails to justify its fees. The company must ensure it keeps existing flywheels spinning and adds new ones. Recommendations were critical in that equation last year. To date, Substack has delivered for its top writers, driving more revenue than the 10% take rate it clips. Given Substack’s rapid growth and revenue opportunities, we should expect good days ahead. Extrapolating from Substack’s available data, the company is likely earning north of $20 million in revenue with a low burn. It’s unlikely the firm would command that price today – though it doesn’t mean the business isn’t in good shape.
#BEST INVESTING SUBSTACKS SERIES#
Substack’s Series B valued it at $650 million. In 2022, Substack shipped extraordinary improvements to its product, none more important than its recommendations feature, which has driven huge growth for top writers. While that necessitated cost-cutting, the chillier climate seems to have had some benefits. The market downturn complicated Substack’s plans to raise a Series C.
Chris Best, Hamish McKenzie, and Jairaj Sethi have built more than a simple way to send emails and collect payments, constructing a powerful creative network. Though Substack has come to define the newsletter movement, its scope, and ambitions extend far beyond it. If you only have a few minutes to spare, here’s what investors, operators, and founders should know about Substack.
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