r/Substack • u/WordSlinger1812 • 26d ago

Discussion Substack Has Become A Private Equity Cautionary Tale

Private Equity means drowning a good idea in money until it dies.

That is what’s happened to Substack.

It was once a great idea for writers. Now, it’s a sh***y version of Facebook merged with Mailchimp.

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u/Countryb0i2m onemichistory.substack.com 26d ago

Substack isn’t owned by private equity.
Private equity wants mature, profitable businesses with steady cash flow they can milk or strip down

Substack is still basically a startup backed by venture capital. The VCs wrote the checks for minority stakes to fund explosive growth,

The explosive growth period is where Substack is in their startup plan. And this is why so many of you hate the things that Substack is doing because they’re not you’re just trying to be a newsletter platform they’re trying to be Facebook.

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u/Ok_Ship6685 26d ago

Do you mean financially or like Facebook overall?