Page 38 - Forbes - USA (February 2018)

Technology CROWDFUNDING

what led him to invent Patreon in the fi rst
place. “A lot of creators depend on us being a
high-performance team,” Conte says during
an interview at Patreon’s San Francisco of-
fi ce. “That’s the most important thing in the

world to me, so there’s less time for music.”
Conte’s dedication stems from a convic-
tion that Patreon can save content creators
from having to survive on digital advertis-
ing—an all but impossible task for most—
or resort to one-time campaigns on sites
like Kickstarter and Indiegogo. Th e compa-
ny is built on a counterintuitive bet that fans
are willing—even eager—to pay monthly
subscriptions for content that they could get
for free as long as it helps support their fa-
vorite artists and it’s easy to do. Th ere’s rea-
son to believe he’s right. More than a mil-
lion Patreon users are helping provide some
50,000 artists with a predictable monthly
paycheck. “On Kickstarter and Indiegogo,
creators essentially have to start over every
time,” says Danny Rimer, a partner at Index
Ventures who is a Patreon investor and
board member. “It’s the same reason soft -
ware companies went from licensed soft -
ware to subscriptions: predictable revenue
and better service for customers.”
Digital Medici ago with his Stanford University roommate
Since Conte started Patreon four years
Sam Yam, 33, who is CTO, the compa-
You no longer need to be rich to be an arts benefactor. ny has paid out more than $250 million to
But can crowdfunding site Patreon save creators its artists—$150 million in 2017 alone. Pa-
from the starvation wages of online advertising? treon’s traction is fueled by a simple pledg-
ing system and the direct line it opens be-
BY KATHLEEN CHAYKOWSKI
tween artists and fans, or “patrons,” who get
access to perks like live Q&As or exclusive
t’s 10 p.m. on a Sunday in November at Cali- chats with the artists, and more casual behind-the-
fornia’s Burbank Airport, and Jack Conte, the scenes footage than an artist might share on Insta-
typically beaming, bearded half of the hus- gram or Facebook. It also doesn’t hurt that being
Iband-and-wife musical duo Pomplamoose, altruistic makes people feel good. In other words,
is leaning back in a chair, his hoodie pulled over Conte didn’t need to change human nature to get
his head, trying to get some rest. Conte, 33, spent Patreon to work, he simply needed to facilitate the
much of the weekend in Los Angeles jamming exchange between fan and artist.
with his funk band, Scary Pockets, and now it’s While Patreon is no longer the only player
time to return to San Francisco for an entirely dif- in its category (Kickstarter launched a competi-
ferent type of gig: his day job running Patreon, a tor called Drip in November), it is the largest—

website and mobile app where fans pay month- and it’s growing faster than ever. The number of
ly subscriptions to support their favorite creators, patrons and creators and the amount pledged
from painters to podcasters, singers, dancers, writ- are all doubling yearly. Now Patreon is using
Patreon cofounders Jack ers, game designers and photographers. some of the more than $100 million it has raised
Conte (left) and Sam Yam The moment perfectly captures what Conte from investors, which include Joshua Kushner’s

watched the internet

destroy the business lightheartedly calls his “identity crisis”: being CEO Thrive Capital and Freestyle Capital, to double TIMOTHY ARCHIBALD FOR FORBES
models that supported and founder of a 100-person startup (valued in Sep- its head count over the next year.
scores of content creators. tember at an estimated $400 million) without com- By some measures Patreon’s success defi es logic.
They say their technology

can be part of the solution. pletely giving up on his passion for music, which is The average user pledges $12 per month, more
36 | FORBES FEBRUARY 28, 2018