The news: Newsletter and digital publishing startup Substack has abandoned plans to raise a Series C funding round due to the souring market, per The New York Times—a sign that hype around the company that skyrocketed during the pandemic may be cooling.
How we got here: Substack was heralded during the pandemic as a new model for digital publishing, but current economic uncertainty and the recent interest rate increase has dampened investor enthusiasm.
A not-so-new model: Substack is feeling some of that economic squeeze, but it also hasn’t turned out to be the savior of digital publishing that some thought—or hoped—it might be.
The big takeaway: Substack’s choice to skip out on a new funding round reflects both the current uncertain state of the economy, as well as the fact that digital publishing’s struggles have not been solved.
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